Please, let me elaborate.... It would seem that the target price for ACI is 5$ due to the options straddle as that would be the price to make most every option on the board worthless. However... There are a couple of factors that may make this month a little different:
1) Fundamentals in coal have been/are still improving.
2) There is an enormous short position on ACI...some 30M shares
3) The market is ripe for a correction, thus keeping many buyers on the sidelines while unnerving shareholders...making it the potentially perfect week for unloading a short position and capitalizing on options simultaneously.
The other possibility: The 5$ spread was completely sold (calls and puts) and the MM's with the big money are going to keep it at 5$ by close of next Friday.
just considering the possibilities.... and definitely following the money.