President Donald Trump said he will authorize "clean coal" energy production
Peabody Energy Corp (NYSE:BTU) stock is up 3.5% to trade at $13.81 at last glance, after President Donald Trump said he will authorize "clean coal" energy production. The move comes in response to China's coal-fired power plants, which Trump said gave them an economic edge.
The shares are on track for a fourth-straight daily gain, looking to trim their 36.2% year-to-date deficit. The security is bouncing off a March 6, three-year low of $12.15, while testing overhead pressure at $14 and its 20-day moving average, the latter of which has been a level since November.
An unwinding of pessimism could generate tailwinds. Short interest rose 30.7% in the last two reporting periods, and the 14.8 million shares sold short now account for 12.3% of the stock's available float. It would take shorts nearly one week to buy back their bearish bets, at the stock's average pace of daily trading.
That pessimism is echoed over in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.35 sits higher than 80% of annuals readings.
Drilling down to today's options activity, 1,399 calls and 2,440 puts have exchanged hands so far, which is triple the volume typically seen at this point. Most active by far is the June 7 put, where positions are being opened.