Alpha Natural Resources (ANR) is up 91 cents to $28.65 and has rallied almost 20 percent since earnings were reported last Thursday. Recent options trades on the coal producer include a Nov 23 – Dec 24 put spread, bought for 94 cents, 10000X. Looks like a roll and possibly closing out a position opened Thursday, when the stock was up on earnings and ANR options saw a flurry of activity — including 7500 Nov 23 puts bought for 70 cents and tied to stock at $26.36. Today’s spread probably rolls the position out one month and up one strike following the move higher in the underlying since Thursday.
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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.