Strange Action in James River Coal
By:
TraderMark Wednesday, November 19, 2008 4:54 PM
Around noon today this stock has taken off like a rocket in a horrible tape... one could speculate either some news is on the way (buyout?) or a hedge fund is being taken out to be shot and had a short
James River Coal (JRCC) position outstanding... hmmm....
Or just another random moment of nonsense in this casino. Other coal stocks are down 10%+, James River is up 13%. Volume is average - I only noticed because this is one of the 3 remaining global growth stocks we still own (for trading purposes only).
In the option pit someone bought 240 November 7.5s (open interest around 350), and 500 November 10s (open interest 640) - bid ask is 0.05/0.15 on the latter so it could be just a random (cheap) bet on this price action. Sounds about right - this is the casino after all.
Long James River Coal in fund; no personal position
Related Stories
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
