Sidewinder Update: CIT Group (NYSE: CIT), Peabody Energy (NYSE: BTU)

Following news that CIT Group (NYSE: CIT) elected former Merrill Lynch executive John Thain (previously CEO at NYSE and COO at Goldman Sachs) as its new chairman and chief executive officer, the company’s stock climbed $1.80, or 3.5%, to $31.83 during morning trading. The July 32 calls changed hands more than 12,300 times out of the gate, thanks to investors who sold the calls at a bid price of $4.85 per contract (the calls have an implied volatility of roughly 58).

Peabody Energy Corp. (NYSE: BTU) did not announce notable news this morning, and the stock dropped 60 cents to $41.31 so far this trading session. At 10:31 a.m. EST, the March 45 calls crossed the tape more than 5,000 times, as we saw several blocks trade at the ask price of $1.25 per contract with an implied volatility of approximatley 47. Investors expressed a bullish bet on the company, and expects the stock to close higher than $46.25 at March options expiration to make money.