Option Investor

Option Writer Portfolio - November

Printer friendly version

Company Description:

The Mosaic Company (MOS) manufactures phosphate fertilizers, feed phosphate and pot ash fertilizers sold worldwide. If you are a long term reader of OptionWriter, you may remember that we were selling the 110 puts in July. The stock has been sold off all the way down to a low of $30.10 as of yesterday. It is believed that a lot of funds owned stocks like MOS, Potash (POT) and Monsanto (MON) to raise capital for redemptions. MOS had some relative weakness earlier today but has begun to find some footing and join the bounce today. Let's sell the November 25 puts for about $1.50 - $1.60. However, I only want to sell half of the position now and the remaining once contracts once the stock breaks above the 8 day EMA (purple line). The option symbol is MOSWE. Inital margin is $505 on two contracts. The technical stop loss is at a breach of yesterday's low less $0.25 or $29.76 (give it a little room to flush out some stops).

Option Writers Newsletter Archives