Peabody Energy (BTU) Options Action Soars

All the fear generated by the earthquake in Japan has the media trumpeting a potentially big cutback in nuclear energy development, which has attracted the interest of options traders and investors in general in coal companies like Peabody Energy (NYSE:BTU).

Most of this is just emotional and largely irrelevant, even if foolish Western countries make stupid nuclear decisions, as the country that really counts in nuclear, China, has already said they aren't going to change any of their nuclear policies or strategies.

Peabody has still been hot though, shooting up over $6 a share over the last four trading days, with volume on Wednesday almost four times normal.

As for options, they're also trading at about 2.5 times normal, attracting about 26,000 calls and 12,000 puts.

For calls, the most active was for March 70, with 6,000 traded. The contract is bid at 53 cents, is 2.4 percent out-of-the-money, and has two days of life remaining after Wednesday.

Implied volatility in BTU is up 2.5 percent to 45.

Peabody closed Wednesday at $67.67, gaining $2.54, or 3.90 percent.