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The market started out a bit weak, but, managed to came back up to close in the green. Coal stocks were strong today: MEE +5.68%, CNX +1.88%, BTU +2.37%, ACI +2.14%. I mentioned unusual options activities in MEE in last night's article. Today I bought some Jan 40 calls on MEE at $2.95 and took a quick +22% intraday profits, at $3.6, in the afternoon (click to enlarge the image):

I picked the January calls, which is 2 months out, because the market was shaky today. These options closed at $3.7, which was the day high. MEE is looking a bit toppy right now, although the momentum could push it a little higher. I think these January 40 calls are reasonably priced with 2 months trading time. MEE could see $45 before the end of the year.

In the Trading Room, we were also focused on the agriculture stocks. Agriculture stocks broke their recent resistance levels today: POT +6.16%, MOS +5.77%, CF +3.2%, MON +3.07%. I started commenting on these in the morning:

November 17, 2009 8:39 AM
POT
a litlle breakout, above $105...

November 17, 2009 8:46 AM
MON
new leg up!

November 17, 2009 9:01 AM
POT
$106+; we can see $110 in a flash if the market strengthens... VIX still above 23, so, I'm a little more cautious...

November 17, 2009 9:06 AM
MOS
waking up...

November 17, 2009 9:41 AM
POT
I'm on Nov 110s

November 17, 2009 12:28 PM
POT 110 calls
just got out; in at $1.15, out at $2.5 +117% looks like it's still going higher...

I got into the POT Nov 110 calls at $1.15 and took a quick intraday profit of +117%, at $2.5 (click to enlarge the image):

These options did indeed go higher. They went as high as $2.93 and closed at $2.87. The above 2 trades were quick intraday trades and were only discussed in the Trading Room. We also have a new published position on MON Dec 75 calls. MON went another $1 higher in the after-hours trading, so, our position should look pretty good tomorrow. These are in-the-money and still have more than a month left in trading. I think we can see MON testing the $80 level soon. We might see some quick profit-taking tomorrow on these agriculture stocks, for they have gone quite far today. But, if the broader market strengthens, the agriculture stocks should go higher by the end of the week.

Source: Coal and Agriculture Stocks Rally Tuesday