| Why bulls are charging into Potash | |
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(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
Materials have been strong, and now traders want to grow profits with fertilizer maker Potash Corporation of Saskatchewan.
optionMONSTER's Heat Seeker tracking programs detected the purchase of 11,000 January 25 calls, most of which fetched $0.31 to $0.39. Volume was almost quadruple open interest at the strike, which indicates new money was put to work.
Long calls make money to the upside because they lock in the price where investors can buy shares. Their cheap cost also helps manage risk and can produce significant leverage on a percentage basis. (See our Education section)
POT rose 2.51 percent to $22.06 yesterday. The stock has been on the rise since hitting $19.47 on Oct. 2, its lowest price since late 2008. Other names that benefit from a weak U.S. dollar, like energy, steel makers, and gold miners, have also worked of late. Rival fertilizer producer Mosaic also saw bullish option activity yesterday.
Total option volume was twice the daily average, with calls outnumbering puts by more than 5 to 1. Earnings are due Oct. 29.
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Potash Corporation of Saskatchewan Inc.
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CODE : POT.TO |
ISIN : CA73755L1076 |
CUSIP : 73755L1076 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Potash Corp. is a producing company based in Canada. Potash Corp. is listed in Canada. Its market capitalisation is CA$ 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. |