By Jud Pyle, CFA, chief investment strategist for the Options News Network

Massey Energy

(MEE)

did not report any notable news today, but at least one option investor has taken an interest in the March 47 calls, revealing a bullish stance on the coal company.

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The out-of-the-money March 47 calls have traded more than 5,300 times today vs. current open interest of just 281contracts, suggesting these calls were traded to open. The majority of them traded at the ask price of 80 cents per contract, likely meaning they were initiated on the buy side.

This means bullish investors who bought these calls need MEE shares to expire higher than $47.80 at March options expiration in 35 days to make money, unless of course the calls gain value prior to expiration following a rise in the shares and the investor chooses to sell these contracts to book profits. In terms of volatility, these options have an implied volatility of 51, compared to a 63-day realized volatility of 54.

MEE shares peaked at $49.43 on Jan. 19, and are currently trading 17% off their recent high. The stock is up 13 cents to $41.75 on the day so far. Investors who are long these calls expect the stock to climb at least 14.5% higher throughout the next month in order to make money on this trade.

Jud Pyle is the chief investment strategist for Options News Network (www.ONN.tv) and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.

Jud Pyle, CFA, is the chief investment strategist for Options News Network. Pyle started his career in finance in 1994 as a derivative analyst with SBC Warburg. After four years with Warburg, Pyle joined PEAK6 Investments, L.P., in 1998 as an equity options trader and as chief risk officer. A native of Minneapolis, Pyle received his bachelor's degree in economics and history from Colgate University in 1994. As a trader, Pyle traded on average over 5,000 contracts per day, and over 1.2 million contracts per year. He also built the stock group for all PEAK6 Investments, L.P. hedging, which currently trades on average over 5 million shares per day, and over 1 billion shares per year. Further, from 2004-06, he managed the trading and risk management for PEAK6 Investments L.P.'s lead market-maker operation on the former PCX exchange, which traded more than 10,000 contracts per day. Pyle is the "Mad About Options" resident expert. He is also a regular contributor to "Options Physics."