ACI

I entered a position on ACI @$18. Could not resist!!!

Coal Sector

Coal Sector - $DJUSCL

Commentary

I think the coals are just getting started to go up. As stated in an earlier post, coal rises into summer and evidence is backing that up based on weekly charts.

ACI (Arch Coal) $17.98 and MEE $21.34 (Massey Energy) are in a good position for at least a 10% rise.

Other coal companies: ANR, BTU, CNX, FCL, JRCC, WLT

CNX Earnings

I was very wrong on the earnings analysis for CNX. I am very happy I took profits though.

The right thing to do was to take profits before earnings considering there was not much left in the option price anyways. That is always the right thing to do because it could have went the other way.

CNX

CNX - Earnings Report

CLICK HERE for full report

ANR

ANR - Closed the rest of the position ANRQC MAY15 PUT @.45 for a 57.5% GAIN. I changed my mind from the previous post for holding it through earnings of CNX.

ANR

ANR - Closed 1/3 postion of ANR MAY15 PUTS @$.50 for a 53% GAIN.

Will keep the rest through CNX earnings up to ANR's earnings May 6th.

UPDATE 12:23PM: Stock is higher today because of some buyout rumors.

CNX

Consol Energy (CNX) - I closed the other half of my position for a 64% GAIN. I don't want to hang out through earnings on this one, especially after NSC report on coal shipments. I am completely out of CNX for now. Bought to close CNXQD @$.30

Norfolk Southern Q1 Earnings Call (37.37 ) -Update : Co says the recession continued to depress transportation demand, volumes were down 20%. Total coal revs fell 9% y/y, intermodal revs fell 25%, merchandise revs down 28%. Looking ahead, co says the auto and housing markets' bottom may be at hand. Co sees growth in scrubber stone, agrifuels, military traffic and waste products; sees weak metallurgical coal demand in U.S. and export markets, lower electricity demand, competition from natural gas. Co sees local domestic intermodal market growth, weak international shipments.

This report could be a tell of CNX earnings report. I have a position in Alpha Natural Resources (ANR) also that I may consider getting out of with a gain. If CNX's report doesn't effect the coal sector too much either way, I will consider writing more May puts for time decay income. I will keep you posted.

CNX

CNX - I will close the other half of my position by tomorrow afternoon. Earnings out on Thursday, Apr 23. I would rather take my gain, than risk it through earnings. I will post once I close the position.

See previous post: CLICK HERE

CNX

CNX - Just a reminder. Earnings April 23. I think after their earnings, we could look for another entry into coal.

CLICK HERE FOR PREVIOUS COMMENT

Coal Sector $DJUSCL

With BTU earnings out, the whole coal sector is down. I think this is a good indicator of the next earnings release coming from CNX on April 23. After CNX's earnings, I think the coal sector will have been driven down to good levels to sell some naked puts. I don't think it will matter much what the other coal companies report after CNX's report next week. The coal sector typically rises into the summer each year, so I think selling OTM puts after CNX earnings will be a great move.

CNX

CNX - Closed half of my position at (CNXQD) $.35 today for a 58% GAIN in 7 days. The reason I did that is because Peabody (BTU) another coal company is set to report earnings in the morning. If it is bad, it could bring the whole sector down. Just trying to limit risk.