Arch Coal (NYSE: ACI) closed at $18.50 Friday. ACI January and February option implied volatility of 87 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Massey Energy (NYSE: MEE), a coal miner, closed at $16.19 Friday. MEE is scheduled to report Q4 EPS in the February option cycle. MEE February option implied volatility of 108 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

Consol Energy (NYSE: CNX) closed at $32.15 Friday. CNX has two principle business units: coal and gas. CNX February option implied volatility of 90 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Alpha Natural (NYSE: ANR), an Appalachian coal producer, closed at $18.38 Friday. ANR February option implied volatility of 107 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Peabody Energy (NYSE: BTU), a coal company, closed at $25.06 Friday. BTU is expected to report Q4 EPS in late January. January and February option implied volatility of 97 is above its 26-week average of 89, according to Track Data, suggesting larger price movement.

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

Alpha Natural (NYSE: ANR) will be acquired by Cleveland Cliffs (NYSE: CLF) in a cash and stock transaction valued at $10 billion.

ANR stockholders will receive 0.95 CLF common shares and $22.23 in cash. Based on CLF closing price on July 15, ANR shares would receive $128.12 per share.

ANR August option implied volatility of 86 is above its 26-week average of 64 according to Track Data, suggesting larger price movement.

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

Royal Dutch Shell (NYSE: RDS.A) closed at $85.07 Tuesday. Crude futures are down 1.88% to $126.43 according to Bloomberg.

RDS overall option implied volatility of 27 is near its 26-week average of 25 according to Track Data, suggesting non-directional fluctuations.

Alpha Natural (NYSE: ANR), an Appalachian coal producer with a market cap of $5.11 billion, closed at $72.73 Tuesday. Davenport & Company raised its rating to Buy with an $85 target price on May 27.

ANR overall option implied volatility of 65 is above its 26-week average of 58, suggesting larger price movement.

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

MOST NOTEWORTHY: The more noteworthy downgrades today included eFunds Corp (EFD), Halliburton Co (HAL), Coventry Health Care, Inc (CVH), Fording Canadian Coal Trust (FDG) and US Steel Corp (X):

• Citigroup downgraded shares of eFunds Corp (NYSE: EFD) to Sell from Hold to reflect an unfavorable risk/reward as they see little upside if the company sells itself and significant downside due to recent operational issues if the company is not sold.

• Goldman cut Halliburton Co (NYSE: HAL) to Neutral from Buy based on valuation.

• Bear Stearns cut Coventry Health (NYSE: CVH) to Peer Perform from Outperform based on valuation.

• BMO Capital downgraded Fording Canadian Coal Trust (NYSE: CFG) to Underperform from Market Perform on valuation...

• UBS cut US Steel Group (NYSE: X) to Reduce from Neutral based on valuation.
  

OTHER DOWNGRADES:

• Goldman downgraded the coal sector, citing the potential for fundamentals to disappoint. The firm downgraded Arch Coal (NYSE: ACI) to Sell from Buy, Foundation Coal Holdings (NYSE: FCL) to Sell from Neutral, and Alpha Natural Resources (NYSE: ANR) to Neutral from Buy.

• Matrix cut CBRL Group (NASDAQ: CBRL) to Sell from Hold.

• CE Unterberg downgraded Atheros Communications (NASDAQ: ATHR) to Market Perform from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).