Option Investor
New Plays

New Option Plays

Printer friendly version
Call Options Plays
Put Options Plays
POT None

New Calls

Potash Corp. - POT - close: 90.18 chg: +2.83 stop: 85.99

Company Description:
Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, third largest in phosphate and fourth largest in nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and one of only three North American suppliers of industrial phosphates. (source: company press release)

Why We Like It:
It's hard to argue with POT's long-term up trend. The stock has been a consistent winner with investors buying the dips, which seem to occur ever two or three months. POT is rebounding from its latest dip and shares just broke out over its five-week trend of lower highs. Short-term technical oscillators are bullish and its MACD indicator just produced a new buy signal. Plus, we like how POT broke through round-number resistance at the $90.00 mark on above average volume today. Now arguable the stock has short-term resistance at the $92.00 level (the February high). However, it's worth noting that the P&F chart has just reversed from a sell signal into a buy signal with a $105 target. We believe that POT could trade into the $97-99 range before its April 27th earnings report (the date is still unconfirmed).

Suggested Options:
We are suggesting the June options because they have the most open interest. We do plan to close the play before the April earnings.

BUY CALL JUN 85.00 POT-FQ OI=667 current ask $7.85
BUY CALL JUN 90.00 POT-FR OI=163 current ask $4.75
BUY CALL JUN 95.00 POT-FS OI= 96 current ask $2.70

Picked on April 05 at $ 90.18
Change since picked: + 0.00
Earnings Date 04/27/05 (unconfirmed)
Average Daily Volume = 504 thousand

New Puts

None today.

New Play Archives