Options are active in the Market Vectors Coal Fund (KOL), as the group tries to rebound from three-day 17.5 percent slide. KOL, which is an exchange-traded fund that holds shares in 41 companies involved in the coal mining industry, is up $1.26 to $43.85 and volume in the options market is running double the usual. The gains come amid a modest rebound in commodity prices Wednesday. Crude oil is up 11 cents to $119.28 a barrel and gold added $2.00 to $888 an ounce. However, most of that volume in the coal ETF seems to be bearish trading, and perhaps bets that today’s rebound won’t last. The top trade of the day, for example, was an order for 4,850 KOL January 35 puts traded offerside or for $2.85 a contract.
Category: All ETFs
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.