Wanted: Peabody Energy Corporation (BTU) Weekly Options

Call volume is accelerated, as Peabody Energy Corporation (BTU) bounces from 12-year lows

Digital Content Group
Feb 4, 2015 at 1:35 PM
facebook X logo linkedin


Yesterday, Peabody Energy Corporation (NYSE:BTU) gapped higher, after sector peer Arch Coal Inc (NYSE:ACI) posted a positive earnings report. Today, BTU is keeping this momentum alive -- as speculation over a potential strategic partnership overshadows the Department of Energy suspended funding of the FutureGen clean-coal project -- adding 2.7% to trade at $7.26. As such, calls are crossing the tape at levels five times what's normally seen at this point in the day.

Most active is BTU's weekly 2/13 7.50-strike call, followed by the weekly 2/6 7- and 7.50-strike calls. According to Trade-alert.com, new long positions are being opened here, meaning traders expect the stock to settle north of the strikes by the respective expiration dates.

Typically, traders have taken a bearish approach to BTU. For instance, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 3.09 sits only 2 percentage points from an annual extreme, pointing to a much stronger-than-usual preference for puts over calls.

Outside the options pits, BTU is a favorite of short sellers. Roughly 20% of the stock's float is sold short, accounting for nearly a week's worth of pent-up buying demand, at average daily levels.

This pessimism seems to be well-deserved, as Peabody Energy Corporation (NYSE:BTU) has shed almost 55% on a year-over-year basis and hit a 12-year low just one week ago. The security's current rally attempt could be short-lived, as it's seeing overhead pressure from its descending 10-week moving average, which has acted as resistance in the past.

Weekly Chart of BTU Since February 2014 with 10-Week Moving Average
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI