BTU
BTU is trading 1.24 down .17 today with IV down 27 points to 174%. Traders are buying to open the BTU December 3 calls paying from .12-.14 a contract to the tune of 30,000 contracts. This is against open interest of only 10,000 contracts.
The trader is making a bet that the underlying could move much higher by the end of Dec.? Alternatively, this could be a hedge against a size up short position as the underlying has been hammered the last few weeks.
This trade should be considered bullish. We also see AGGRESIVLY bullish volatility in BTU.