Option Bulls on Rampage Through Coal Sector
By: Coal stocks fed on rumors involving Walter Energy yesterday, and the options were flowing throughout the sector.
Name any stock in the industry group and there was interest. In addition to WLT, Patriot Coal and Arch Coal saw unusually heavy activity.
ACI, for one, has been under extreme pressure and is hovering near the lower end of its chart. OptionMonster's tracking systems detected buying in the October 21 calls and the October 24s, with more than 20,000 contracts purchased in the two combined.
WLT's activity was most extreme, with more than 120,000 contracts trading overall versus its daily average of just 5,000. ACI and PCX were also well above average.
—Najarian owns ACI calls.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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