Bullish Risk Reversal in Alpha Natural Resources

Alpha Natural Resources

saw the bullish January 2013 8 call- January 2013 4 put risk reversal (buy call/sell put) trade 25,000 times for a debit of $0.40 on Friday. With a net long delta of 57, this trade carrys a long share equivalence of 1.4 million shares and will need the stock to trade at least 35% higher by January expiry to begin to show a profit. The trade has also helped push total contract volume to more than 76,000 contracts on the day, 3.5 times the companys daily average and creates the largest open interest positions in all of ANR's listed options.