Option Update: Coal producers' volatility elevated as shares rally to record highs


Patriot Coal (NYSE: PCX) is recently up $8.91 to $117.

Freidman Billings says: "we are raising our 2009 and 2010 steam coal price outlook by about 25%."

PCX June option implied volatility of 70 is above its 26-week average of 56 according to Track Data, suggesting larger price movement.

Massey Energy (NYSE: MEE), a coal producer, is recently up $5.52 to $70.14.

Freidman Billings upgraded MEE to Outperform from Market Perform.

MEE June option implied volatility of 65 is above its 26-week average of 54, suggesting larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 13, 2012: 04:01 AM

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