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MOS $99.21 - Mosaic Co

Outstanding! Mosaic took a three-day plunge from $100 on profit taking and triggered our entry at $85. Strong comments in the media from Monsanto, Dupont, TNH and Mosaic combined to push it right back to $100 by Friday. If only all our entries could be this good!

Company Info:

The Mosaic Company (Mosaic) is a producer of phosphate and potash combined, as well as nitrogen and animal feed ingredients. The Company operates its business through four business segments: phosphates, potash, offshore and nitrogen. The Phosphates segment operates mines and concentrates plants in Florida that produce phosphate fertilizer and feed phosphate, and concentrates plants in Louisiana that produce phosphate fertilizer. The Potash segment mines ad processes potash in Canada and the United States and sells potash in North America and internationally. The Offshore segment produces and markets fertilizer products and provides other ancillary services to wholesalers, cooperatives, independent retailers, and farmers in South America and the Asia-Pacific regions. The Nitrogen segment consists of its equity investment in Saskferco and Mosaics nitrogen sales and distribution activities.

Breakdown trigger: $85 Hit Jan-10th

Position: 2010 $100 LEAP Call LXW-AT @ $24.20


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New Non-Energy Plays
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AAPL - Apple Inc *** Covered LEAP Call ***

Apple has declined more than $30 off its highs and appears to have found support ahead of MacWorld next week at $170. Odds are good Steve Jobs will pull another rabbit out of his hat on Tuesday when he makes all the new product announcements.

I am replacing the ETFC covered call with Apple. The potential for Apple to rebound is very strong and additional support is just below at $160.

Company Info:

Apple Inc.designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a variety of third-party Macintosh (Mac), iPod and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores. The Company sells to education, consumer, creative professional, business and government customers.

Long: Buy AAPL now at ask on Monday currently $172.69
Short: Sell 2009 $200 LEAP Call OBR-AT at bid currently $28.20

The spread is $27.31 plus the call premium of $28.20 will produce a profit of $55.51 on a $150 investment or roughly 35% if Apple is over $200 by expiration.


 

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