Coal India follow up..

In one of my previous post http://writingoptions.wordpress.com/2011/08/20/coal-india-indias-most-valuable-company/ , I had written about selling Coal India 440 call. On Friday, I sold PSU 420 calls. In the last few days, there have been some negative news around Coal India. Twenty two mines of Coal India’s subsidiary Bharat Coking Coal Limited (BCCL) mines were banned by Jharkhand Pollution Board. Apart from mining ban, Coal India is also negotiating on the wage issues. Workers are demanding wage hike in excess of 100% whereas management and analysts had built-in 30% hike expectation. On Friday, the Supreme Court banned mining in two districts of Karnataka. This also had a negative sentimental impact on Coal India. Given all this news environment and weak market, I don’t think Coal India can cross 400 in this series.