Mosaic is trying to bounce, and one investor is looking for a
optionMONSTER's Heat Seeker tracking system detected a surge of
call activity in the fertilizer stock, with roughly 5,000 contracts
trading in three different strikes. The November 55s were bought
for $3, while the November 60s and December 55s were sold for about
$1.17 and $4.02 and $4.03, respectively.
Volume was below open interest in December, which indicates that an
existing position was closed in that month. The activity suggests
that the investor rolled a bullish trade one month closer and is
now using a
. It's somewhat unusual because rolls normally go in the opposite
direction as traders look for more time. (See our
This adjustment reflects strong short-term bullishness toward MOS,
which came into the session down by more than one-quarter of its
value in the preceding three months. It's now up 4.86 percent to
$53.68 in midday trading.
The last earnings report on Sept. 23 was mixed, with revenue strong
but profit weak as ammonia and sulfur costs squeezed margins.
Overall options volume in MOS is slightly below average, with calls
outnumbering puts by more than 9 to 1.