| 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 $19.47 on Oct. 2, its lowest price since late 2008. Other names that benefit from a weak U.S. dollar, like energy, steel makers, and gold miners, have also worked of late. Rival fertilizer producer Mosaic also saw bullish option activity yesterday.
Total option volume was twice the daily average, with calls outnumbering puts by more than 5 to 1. Earnings are due Oct. 29.
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Potash Corporation of Saskatchewan Inc.
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CODE : POT.TO |
ISIN : CA73755L1076 |
CUSIP : 73755L1076 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Potash Corp. est une société de production minière basée au Canada. Potash Corp. est cotée au Canada. Sa capitalisation boursière aujourd'hui est 21,7 milliards CA$ (17,2 milliards US$, 14,4 milliards €). La valeur de son action a atteint son plus bas niveau récent le 24 mars 1995 à 10,00 CA$, et son plus haut niveau récent le 21 septembre 2007 à 99,07 CA$. Potash Corp. possède 840 009 984 actions en circulation. |