The coal sector has been pummeled this year, but one large trader is counting on a floor beneath shares of Alpha Natural Resources.
optionMONSTER's tracking systems detected the sale of 9,184 September 5 puts at the same second this morning for $0.13. Open interest in the strike at the start of the session was 4,940 contracts, so this is a new position.
The put seller is betting that shares of the metallurgical-coal producer will be above the $5 strike price when the September options expire in four weeks. If ANR is below that level, the trader will be required to buy the stock if assigned.
ANR is up 1.06 percent to $6.67. Shares have found support around the $6 level recently, but only after falling steadily from above $28 last November. The company missed earnings estimates but beat revenue forecasts when it reported second-quarter results on Aug. 8.
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