Potash (POT, $49.60, down $3.21) continued its slide today as the stock lost 6% and set a fresh 52-week low in the process. The stock traded as low as $48.99 suggesting even further weakness. Looking at the chart, Potash now looks poised to test $46 and if that level fails it could fall even further. The bulls tried to keep Potash above $50 as shares rallied to a high of $54.89 shortly after the market opened for trading. For those of you that weren’t in our bearish trade, it represented a great time to jump in below our original entry points. The December 50 puts (PVZXJ, $4.60, up $1.30) traded to a low of $2.50 and I liked entry points up $3.00. If you got in at $3.00 then you are already looking at a 50% gain. I liked the December 40 puts (PVZXH, $1.20, up $0.10) up to 80 cents and they traded to a low of 55 cents today. If you got in at 60 cents you’re looking at a double. There are a lot of moving parts in the market right now and what is hot one day is cold the next. Keep your stops tight on this one because Potash will continue to make wild price swings. Rick Rouse Rick@OptionsMentoring.com]]>