Bull goes with flow on James River

By
A A A
Share |

James River Coal continued rallying yesterday, and one bull is looking for more gains.

JRCC optionMONSTER's Heat Seeker tracking system detected the purchase of about 2,600 March 25 calls for $1.35. An equal number of March 20 calls was sold at the same time for $4.30 against existing open interest, which indicates that a position was rolled from one strike to the next.

The transaction let the investor recover $2.95 of principal while maintaining long exposure to the Virginia-based miner, which has been the subject of takeover speculation. He or she also raised the position's gamma to about 9 from about 5, which will increase leverage if JRCC makes a dramatic move higher.

The stock climbed 5.79 percent to $24.12 yesterday and pulled back after hitting a 19-month high of $24.72. JRCC has appreciated 44 percent in the last three months amid frequent call buying.

Yesterday's trades pushed overall option volume in the stock to 19 times greater than average, with calls accounting for 94 percent of the total.

(Chart courtesy of tradeMONSTER)



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: JRCC

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM