Options Intelligence Report: Consol Energy Inc. (CNX) & Market Vectors Gold Miners ETF (GDX)

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CNX ñ Consol Energy Inc.
Multi-fuel energy producer and energy services provider, Consol Energy, Inc., attracted bullish options players during the trading session amid a 0.75% increase in the price of Consolís shares to $45.62. Options strategists anticipating continued near-term share price appreciation enacted debit call spreads by purchasing approximately 4,000 contracts at the April $47 strike for an average premium of $0.82 apiece, marked against the sale of the same number of calls at the higher April $49 strike for $0.33 each.

Investors paid a net premium of $0.49 per contract for the spread, but stand ready to accrue maximum potential profits of $1.51 per contract if Consol Energyís shares rally 7.4% to $49.00 by April expiration. Consolís shares traded above $49.00 as recently as March 18, 2010, when the stock reached an intraday high of $49.30.

 


GDX ñ Market Vectors Gold Miners ETF
The Market Vectors Gold Miners fund, which tracks the price and yield performance of the NYSE Arca Gold Miners Index, lured bullish options players today with its underlying share price increasing 0.85% to an intraday high of $47.29. One GDX-optimist initiated a three-legged options combination play in order to more efficiently position for continued bullish movement in the price of the fundís shares through May expiration.

The investor sold 4,000 puts at the May $44 strike for a premium of $1.03 apiece to partially finance the purchase of a debit call spread. The call spread involved the purchase of 4,000 lots at the May $48 strike for an average premium of $1.70 apiece, marked against the sale of 4,000 calls at the higher May $52 strike for $0.54 each. The net cost of the bullish play is reduced to just $0.13 per contract. Maximum available profits of $3.87 per contract accumulate for the trader if the fundís shares surge 10% from the current price to $52.00 ahead of May expiration.

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This material is not intended as an offer or solicitation for thepurchase or sale of any security or other financial instrument.Securities or other financial instruments mentioned in this materialare not suitable for all investors. Any opinions expressed herein aregiven in good faith, are subject to change without notice, and are onlycorrect as of the stated date of their issue. The information containedherein does not constitute advice on the tax consequences of making anyparticular investment decision. This material does not take intoaccount your particular investment objectives, financial situations orneeds and is not intended as a recommendation to you of any particularsecurities, financial instruments or strategies. Before investing, youshould consider whether it is suitable for your particularcircumstances and, as necessary, seek professional advice.

 
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