For anyone thinking that tomorrows news from BTU may be positive, the April 28 calls are currently selling for just under a dollar. This is probably the best way to play BTU for a pop tomorrow if things are positive.
If you do so, they had better be covered calls that far out. Selling naked September and January '13 28 strike calls, IMO, is asking to be taken to the wood shed in time!
With BTU at $29+ earlier this week, I sold covered calls (April 29s, April 30s and May 31s) on roughly 70% of my holdings keeping the balance unpaired. Fortunately, all strikes were above my cost basis for each covered call sold.
The option paired shares with the April expirations not called away (if any) will be sold again next week for looking at May and June expirations, with the strikes prices TBD.
And if all April positions are all called away, I walk away from this trade with a rather handsome profit and let the unpaired shares run and play again another day.
Long or Short, tomorrow should be interesting given the timing of the earnings report relative to the options expiration date!