Arch Coal (ACI) fell to 52-week lows and implied volatility in the options on the coal producer hit 52-week highs, but the stock is now up 7 cents to $6.30 and 30-day ATM vols are off 1 percent to 90.5. Options trades on the stock today include a Jun 7 – 8 put spread, apparently sold at 90 cents, 9000X, and probably rolling a position in 9000 Jun 8 puts opened on May 8 when 9000 were bought for $1.01 (as part of a Jun 6 – 8 put spread). The contract is being sold to close today at $1.97. The flow isn’t entirely bearish, however, as a multi-exchange sweep of 6124 Jun 7 calls traded on ACI at the 15-cent asking price and appears to be buyer-initiated. It possibly closes. 13,000 calls and 23,000 puts now traded in the name.
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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.