Shares of Alpha Natural Resources hit an all-time low yesterday, but heavy option activity is looking for a floor beneath the stock.
ANR is down 2.89 percent to $6.72 after hitting an intraday low of $6.45 yesterday morning before climbing into the close. The coal miner's shares were above $47 a year ago and have been steadily losing ground since.
Almost 20,000 ANR options have changed hands already this morning, twice its daily average. Nearly 14,000 August 5 puts have been sold, including a single print of 12,500 that went for the bid price of $0.11. Open interest in the strike was 1,097 at the start of the session, so these are new positions.
The put selling is a bet that ANR will hold above the $5 strike price through expiration. The trader is willing to buy shares on a further pullback below the strike. (See our Education section)
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ANR
Alpha Natural trade sees sharp move
May 2, 2013
A trader apparently believes that the coal-mining company will either bounce sharply, possibly back to levels last seen in January, or a break lower by expiration a week from tomorrow.
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