Alpha Natural Resources Continues Higher, Puts Sold

Shares of Alpha Natural Resources (ANR) have been on a tear for the past two weeks, jumping off of the $5.20 level and running higher on word that China’s top central planner is looking to fast-track more than $100 billion in infrastructure spending plans. 

Traders also have hopes that China will announce another stimulus package to support growth; this would ramp up the country's demand for raw materials.

Currently, shares of ANR are higher by 6.93%, trading at $8.80.

Institutional traders are taking the opportunity to sell out of long put positions in the name today. The majority of the action is coming in October, where the $6 put was sold 7,875 times, on the bid, for $0.09, Shortly after, 2,893 puts were sold for $0.08.

The October $5 strike also saw the sale of 7,612 contracts, on the bid, for $0.03.

Volume is below open interest on both strikes, suggesting that these are closing transactions. Monday’s open interest adjust will confirm or deny that.

With shares of Alpha Natural Resources down 82% over the past twelve months (61% since President Obama took office), and short interest over 19%, these types of moves will become more commonplace as the stock starts to battle shorts.

Alpha Natural Resources, Inc. is a supplier and exporter of metallurgical coal for use in the steel-making process and a supplier of thermal coal to electric utilities and manufacturing industries across the country.

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