Readers will recall CCI had established the $23-$25, 1 by 2 ratio call spread in both Nov. and Dec as a way to repair a put sale gone bad in ANR. Both times the stock retreated and these spreads expired worthless.
Let's hope the third time is a charm, because today CCI re-established this spread in Feb. ANR was trading around $22.50 and trade was done for a very modest $.04 per contract credit. If you need a refresher on this
activity and the rationale for this recovery trade it is documented here. Book value (from Yahoo finance) is still over $36 and my calculations of tangible book value is still over $25. Hence, it seems the stock still has a reasonable chance to get back over $25. At that price the spread will have max gain, but it will start to make money over $23 ...all for no further out-of-pocket costs.
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