NEW DIRECTIONAL CALL PLAYS

Intrepid Potash, Inc. - IPI - close: 38.01 change: +2.14

Stop Loss: 34.75
Target(s): 39.90, 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Investors are pretty bullish on the agriculture names. The floods in Australia this year and the wildfires in Russia last year have but a severe dent in the wheat market. Wheat, corn, soybeans, sugar are all climbing. That's lifting the agricultural-chemical names like IPI. I like IPI because the trend is up but it's not quite as overbought and extended like MOS or MON.

Aggressive traders may want to buy calls now. I am suggesting a trigger to buy calls on the dip at $37.25. If triggered we'll use a stop loss at $34.75. Our first target is $39.90. Our second, more aggressive target is $42.00.

FYI: The Point & Figure chart for IPI is bullish with a $62 target.

Trigger @ 37.25

- Suggested Positions -

Buy the 2011 February $40 calls (IPI1119B40) current ask $1.25

Annotated Chart:

Entry on January xxth at $ xx.xx
Earnings Date 03/01/11 (unconfirmed)
Average Daily Volume = 717 thousand
Listed on January 12th, 2010