Market News

October 12, 2016  Wed 10:37 AM CT

Short-term traders are showing caution in Mosaic.

optionMONSTER's tracking program shows that some 2,700 Weekly 25 puts expiring on Friday were bought for $0.68 to $0.81 today. These represent new positioning, as volume was more than 11 times the open interest in the strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

MOS is down 2.65 percent to $24.20 in morning trading and has fallen 9 percent in the last three months. The agribusiness giant is scheduled to report earnings in pre-market hours on Nov. 1.

Overall puts in MOS outnumber calls by a bearish 4-to-1 ratio so far today.

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Four-Part Edition: Cash-Secured Puts, Covered Calls, Stock Replacement Calls, and Protective Puts

We are finishing this year's editions of Advantage Point Newsletters with a "best of" review of the simple options strategies that should be the basic foundation for any investor.

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