Alpha Natural Resources, Inc. (NYSE:ANR) – Call options on coal producer, Alpha Natural Resources, Inc. (NYSE:ANR), are active this morning with shares in the name trading up as much as 4% to $8.39 during the first 30 minutes of the session. As of the time of this writing, the stock has surrendered much of the earlier gains to stand 0.60% higher on the day at $8.12 as of 11:45 a.m. ET. Traders positioning for Alpha Natural Resources, Inc. (NYSE:ANR) shares to extend gains heading into the weekend snapped up roughly 1,000 calls at the Dec. 07 ‘12 $9.0 strike for an average premium of $0.03 apiece in the early going. Call buyers may profit at expiration this week if shares in the coal supplier jump 11% over the current price of $8.12 to exceed the average breakeven point at $9.03. Getting long weekly calls on ANR appears to have resulted in overnight paper profits for some traders who purchased approximately 6,000 contracts at the Dec. 07 ’12 $8.0 strike yesterday for an average premium of $0.11 each. The value of these calls has slipped along with the price of the underlying intraday, but still trade at a substantial premium to the average price of $0.11 per contract paid on Wednesday given the last traded price of $0.20. The strong rally in Alpha Natural Resources, Inc. (NYSE:ANR) shares at the start of the session saw a four-fold increase in the premium required to buy the $8.0 strike weekly calls to $0.42 per contract, the highest since these weekly options were issued.
Equity Options Analyst
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