11:30am (EST) Last week, I talked about making Watch Lists and how they can help you with your trading. One sector we were watching was the Fertilizer/ AG sector and Potash (POT, $90.60, down $2.12) was on that list. I also listed the July 85 puts (PYPSQ, $4.10, up $0.60) as part of your Watch List to see how they trade over the next month. These put options stayed flat for much of last week and even traded slightly lower. Today, they are up 20%. These options are a little expensive but there seems to be some traders targeting the July 80 puts (PVZSP, $2.60, up $2.35). The market looks weak and Potash is looking to follow it lower. I like the July 80 put options for a short-term trade and would do a half position at current levels. You could set an entry limit price of $2.60 and target $3.00-$3.25 as an exit point. Do not pay over $2.75 for these put options. If you do a 10 lot trade, this would make you $500, give or take. Place stops at $1.50 if you do decide to jump in. Rick Rouse Rick@TheOptionInvestor.com]]>
