Overheard on StockTwits: $JRCC Looks Like an Interesting Play

I love StockTwits on the weekends. The pace is a bit slower, everybody has a time to digest the market and share ideas, and you have time to mine through the StockTwits ecosystem looking for ideas. This weekend I stumbled across an interesting one, James River Coal Co. $JRCC

On Tuesday, @OptionRadar picked up on some really bullish activity on $JRCC options:

@paulwoll, a GREAT StockTwits newcomer mentioned picking it up as a play on $MEE’s earnings yesterday:

@GlobalAlpha noticed that it was running yesterday into the close along with another coal name, $ANR:

@gbroyde points out that it’s chart has been lagging $PCX and $BTU (which have been flying):

Which is interesting because if you check this ycharts chart comparing the 3 companies EPS, you see that $JRCC historically lags the 2:

@stevenplace was asked about this stock on StockTwits Brunch today and Steven mentioned that it could break out of it’s 3 month base and suggested a covered call.

You can see this at minute 57:45 below

Every trade has another side and I would present the other side of this, courtesy of @thestockjock

So if, $JRCC doesn’t break out of its base it could be good for a nice short on the downside.