ANR PCX

Alpha Natural Resources ANR, Patriot Coal PCX downgraded by Morgan Stanley today.

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.

EPA News Article from Yahoo! News

I think this news from the EPA could be bad for coal companies and good for natural gas companies in the longer term since NAT GAS is a cleaner energy source. This could also bode well for solar stocks such as ENER.

I don't think it will impact our coal trades now.

CLICK HERE to read the news story.

Yahoo! News

ENER AMSC CNX ANR

Scale into your positions as the market goes down. I want to stay way out of the money because of earnings season and a possible downturn to SPX 790-800.

ENER - Still could see a pullback today into tomorrow.

AMSC - Waiting for a pullback to low $17's.

CNX - SOLD TO OPEN MAY 20 PUTS (CNXQD) - $.85 1/2 position. Already have a naked put in another coal company (ANR).

ANR

SOLD TO OPEN MAY 15 PUTS (ANRQC)- $1.06 today at 10:51am

Alpha Natural Resources (ANR) has good support around $15. Reached support in late January and early March.