Alpha Natural Resources (ANR) sees heavy trading, as the coal stocks got smoked Monday. JRCC is down nearly 8 percent and PCX tumbled 9 percent. Meanwhile, ANR is down $1 to $16.40 on brisk volume of 15 million shares. 37,000 calls and 36,000 puts traded on the coal producer, which is almost 3X the daily average. The top trade is an April 14 – 20 bearish risk-reversal for 12 cents, 5000X on ISE. Data indicate a firm opened the position and it appears tied to 235K shares at $16.37. Apr 14s are now the most actives. 8,500 traded. April 18 calls, April 16 puts, April 19 calls, June 14 puts and June 15 puts are actively traded as well and levels of implied volatility in ANR options is up 10 percent to 57.
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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.