Maybe things are starting to heat up in the coal sector. Arch Coal (ACI) is up 23 cents to $6.39 and options volume on the stock is 14,000 calls and 2,370 puts. Aug 7 calls are the most actives, with 6,050 traded. Another 4,400 Aug 6 calls have changed hands. Alpha Natural Resources (ANR) hit a 52-week low this morning, but is now up 18 cents to $6.92. 11,000 calls and 2,740 puts traded on the stock. Weekly 7 and 8 calls are the most actives. Peabody Energy (BTU) is up 63 cents to $23.29 ahead of earnings tomorrow morning. The top trade is a Mar 27 straddle sold for $8.45, 2000X, and tied to stock for $22.48. Beyond that, Aug 23, 24 and Sep 29 calls are the most actives in BTU. Market Vector Coal ETF (KOL) has hardly been smoking lately — down 55.3 percent over that past 12 months and falling to 52-week lows Monday morning. Today’s order flow might represent a bit of bottom-fishing in some of the beaten-down names in the sector. ACI reports earnings on Jul 27 and ANR on Aug 8.
About the Author (Author Profile)
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.