Trade sees slide ending in Arch Coal
Mike Yamamoto | [email protected]
optionMONSTER systems detected the sale of 3,300 August 3 puts for the bid price of $0.11 in less than 30 seconds this morning. Volume was above the strike's previous open interest of 1,004 contracts, showing that this is a new position.
The put seller is looking for ACI to stay above $3 through expiration in mid-August, but trader would be on the hook to buy shares if they fall below that level. Investors sometimes sell puts this way in hopes of picking up stock at an effective discount on a pullback. (See our Education section)
ACI is down 1.24 percent to $3.19 today and has traded in an extremely tight range for the last week. The coal miner is not far from its low of $3.15 reached on June 4, the worst price since May 2000.