Coal stocks were mixed today as some traded higher while others suffered modest losses. A couple of weeks ago I highlighted a few stocks and options that would benefit from a continuing uptrend. All of them are trading higher from where they were profiled but some of them have exploded and continue to set 52-week highs.
Arch Coal (ACI, $70.61, down $0.89). Profiled at $68.30.
June 70 call (ACIFN, $2.15, down $0.85). The calls are still in-the-money but took a hit today. June contracts expire this Friday.
July 70 call (ACIGN, $5.40, down $0.70). Profiled at $5.10, these calls may still have room to run.
Massey Energy (MEE, $84.67, up $2.83). Profiled at $69.00. This stock has made a nice 15-point move and the calls are now deep in-the-money.
June 70 call (MEEFN, $14.50, up $2.70). Profiled at $3.30. What a run. Set stops at $13.20 which gives you a profit of 300%.
July 70 call (MEEGN, $16.32, up $2.12). Profiled at $6.00. These calls will trade nearly dollar for dollar as long as they stay deep-in-the-money. Set stops at $12.00 to capture a 100% return.
Patriot Coal (PCX, $154.36, up $5.67). Profiled at $122.17. How about this $30 move? Looks like we have a tiger by the tail with this one.
June 125 call (PCXFU, $30.10, up $10.54). Profiled at $7.10. Set stops at $25.00.
July 125 call (PCXGU, $34.90, up $10.50). Profiled at $12.10. Set stops at $25.00 as well.
Peabody Energy (BTU, $77.30, down $0.29). Profiled at $75.28
June 80 call (BTUFP, $0.75, down $0.35). These calls are out-of-the-money are likely to remain that way.
July 80 call (BTUGP, $3.90, down $0.20). Profiled at $4.00. Peabody just isn’t showing the strength that PCX and MEE are.
Joy Global (JOYG, $84.49, up $1.32). Profiled at $84.49.
June 85 call (JQYFQ, $1.60, down $0.55). The 85 strike sems to be the battle line.
July 85 call (JQYGQ, $4.49, down $0.31). Profiled at $4.70. Slightly profitable until today.
Remember, the June options expire this Friday. The July options do not expire until 7/18.
Rick Rouse
Rick@OptionsMentoring.com
