Dan Nathan's Peabody Energy Corporation Trade

, Dan Nathan analyzed the trading action in

. He said that there was an unusually high options and stock trading volume in the name on a day when the stock lost 4.93 percent. More than six times average daily options volume and almost four times average stocks trading volume was achieved. The most active options were the January 13 put options, with 5,000 traded contracts. Traders paid the premium of $0.81 for these, which sets the break-even at $12.19. At the same time somebody bought 200,000 shares of

which is essentially a call, said Nathan. Nathan thinks that the stock is oversold at this point and he would be a buyer of a close to at-the-money call option with three to six months expiration.