Monday, February 6, 2012

ANR Call Spread - Foruth Time a Charm?

As last discussed here CCI has made several attempts to repair a trade in ANR by buying a 1x2 call ratio spread.    With some recent positive movement in the stock, time to try that that once again.  This time by buying 1 lot of Mar ANR $24 and selling 2 lots of Mar ANR $26 calls on Friday.  That trade was done for a modest net credit if $.10/contract.   If the stock can bounce back to $26 (still my adjusted book value) we will have more than recovered the loss in this trade.

FYI, This weekend ANR discussed shutting in a small amount of production.  That could be a catalyst to  change some of the dynamics for this stock.

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