Consider This Before You Buy Alpha Natural Resources
By Sean Skinner:Your analysis says Alpha Natural Resources (ANR), Peabody (BTU), Arch Coal (ACI), Patriot Coal (PCX), and the coal ETF KOL are all cheap. At the same time, you're worried coal prices and these stocks could drop further. What do you do?Consider this options strategy.Investopedia notes about Put Writing:
A put is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
When you write (sell) a put, youComplete Story »