22,000 calls traded on Peabody Energy (BTU) yesterday, more than 3X average daily volume, and the action in February with earnings set for 1/27. The February $50 and $55 OTM calls saw big block buys, with 8,000+ of the more than 10% OTM $55 calls being bought. Shares are trading at $49.40 with implied volatility up 15% to 47%, and Peabody is seen as a big player in the China coal boom which is very hot right now as economic data shows continued explosive growth in China and a strong appetite for commodities. Shares are not a bad value at 13.5X cash flow, and the breakout to 52 week highs today should target at least the channel top at $52.50.