Alpha Natural draws heavy put selling
Chris McKhann | [email protected]
More than 37,400 ANR options changed hands the day, nearly double its daily average of 19,000. optionMONSTER systems show that 7,500 June 7 puts were sold at the bid price of $0.51 against open interest of fewer than 300 contracts, clearly a new position.
A minute later 135,000 ANR shares traded for $9.4944. It is possibly that the stock and options were tied together as a delta-neutral strategy, or the short puts could have been making a straightforward bet that ANR will remain above $7 through the June expiration. Either way, the trader isn't expecting a big drop in shares in the next five months. (See our Education section)
ANR finished the week at $9.55, down 2.25 percent on Friday after losing in the previous three sessions. The stock had reached an intraday high of $10.74 on Monday, more than double its 52-week low of $5.28 from early September.