NEW DIRECTIONAL PUT PLAYS
Agrium Inc. - AGU - close: 90.69 change: -0.58
Stop Loss: 92.05
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on May 9th
New Positions: Yes, see below
Why We Like It:
AGU is in the agricultural chemicals industry. It competes with companies like CF, POT, and MOS. Shares of AGU have not been participating in the stock market's rally. Quite the opposite with a steady trend of lower highs and lower lows. You could label this a bearish momentum trade. Currently AGU is hovering above round-number support at $90.00. A breakdown could see an acceleration in the down trend.
I am suggesting a trigger to buy puts at $89.75. If triggered our target is $85.25. More aggressive traders could certainly aim lower. The Point & Figure chart for AGU is bearish with an $82 target.
NOTE: AGU could see some volatility when investors react to earnings from its rivals. POT is due to report earnings on April 25th. CF reports in early May.
Trigger @ 89.75
- Suggested Positions -
buy the May $90 PUT (AGU1318Q90) current ask $2.30
Entry on April -- at $---.--
Average Daily Volume = 1.5 million
Listed on April 23 2013