I already have this bookmarked for a few months, thanks anyway. I been watching the coal producers since Feb., JRCC was/is lucky becausee most of their future production haven't been hedge and are selling forward month at these inflated prices coal prices. Even if spot goes down, they are still going to deliver at these price far into 2010-2011. if you want to short then play with leaps option and not the stock or you might blow out before it goes down.
Agreed. I'd definitely use puts deep in the money and far out, if i was shorting this. I'm not because i don't think you should short something just because you think it is too high.
Has anyone ever tried to set up some sort of arbitrage among the energy sectors (gas, oil, coal, electric etc...) by using equivalent BTU's? So you would short the overbought and buy the under based on equivalent BTU's.
if my projection is even half right I think it will hit 80 by july exp. but keep a eye on the coal spot price next week. If it increase you can be sure the sector will keep moving up.