Why trader is selling puts in Potash
Chris McKhann | [email protected]
More than 3,500 POT April 37 options have changed hands already today, 4 times the previous open interest at that strike in a new position. The largest block of 2,100 was sold for $1.60.
The put seller is looking for POT to stay above $37 through expiration in mid-April. The trader is also clearly willing to buy shares and may be using the strategy in hopes of acquiring shares on a pullback. (See our Education section)
POT is up 0.96 percent to $35.91 this morning, its highest level since gapping down at the end of July. The fertilizer company has been trending higher since that time, when it dipped as low as $28.55.