Caution remains in Intrepid Potash
David Russell | [email protected]
optionMONSTER's Depth Charge monitoring system detected the purchase of more than 11,000 December 11 puts, most of which priced for $0.80 to $0.95. Volume was more than 90 times the previous open interest at the strike, indicating that new positions were initiated.
These puts ensure a minimum selling price in the fertilizer stock, letting investors protect long positions against drops or speculate on further declines. (See our Education section)
IPI hit an all-time low of $12.04 yesterday, before bouncing and closing up 2.27 percent to $13.07. It cratered 29 percent on Wednesday after Russia's Uralkali withdrew from a potash cartel, threatening to send prices spiraling lower. Other companies in the industry also tanked.
Overall option volume was 16 times greater than average in the session. Puts accounted for a bearish three-quarters of the total.