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Potash Corporation of Saskatchewan Potash fell after reporting earnings late last week, but the bulls are looking for a rebound by the end of summer.
optionMONSTER's Heat Seeker shows that traders bought about 3,500 each of the September 35 and 36 calls on Friday, paying $0.61 to $0.65 and $0.41 to $0.43 respectively. Volume more than double the open interest in each strike, indicating that new positions were established.
Long calls lock in the price where investors can buy a stock, which lets them position for a rally with limited capital. That can be safer than purchasing shares directly because only the cost of the options can be lost on a pullback. The calls can be sold anytime before they expire but will lose value if the stock drops. (See our Education section)
POT slipped 0.34 percent to $32.53 in afternoon trading. The fertilizer company pulled back after disappointing quarterly results Thursday morning and is now at the bottom of a range in place since the beginning of April.
Total option volume in Potash topped 13,700 on Friday, quadruple its daily average for the last month. Overall calls outpaced puts by a bullish 4-to-1 ratio.
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Potash Corporation of Saskatchewan Inc.
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CODE : POT.TO |
ISIN : CA73755L1076 |
CUSIP : 73755L1076 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Potash Corp. is a producing company based in Canada. Potash Corp. is listed in Canada. Its market capitalisation is CA$ 21.7 billions as of today (US$ 17.2 billions, € 14.4 billions). Its stock quote reached its lowest recent point on March 24, 1995 at CA$ 10.00, and its highest recent level on September 21, 2007 at CA$ 99.07. Potash Corp. has 840 009 984 shares outstanding. |