Buyers bet on Mosaic recovery

optionMONSTER

A large trader is betting that Mosaic will continue to ride its recent momentum higher.

optionMONSTER's Heat Seeker system detected the sale of 6,678 January 50 calls for $0.25 and the purchase of 6,678 March 52.50 calls for $0.93 yesterday. Volume is below the previous open interest in the January contracts, which expire at the end of this week, indicating that a long position was closed and rolled forward to a higher strike.

The investor is spending a net $0.68 to stay in the trade at a higher level for an additional two months. The new long calls lock in the price where the stock can be purchased through mid-March but will expire worthless if shares remain below $52.50 in that time. (See our Education section)

MOS gained 2.67 percent yesterday to close at $49.31, surging for the second session in a row and trying to recapture its 200-day moving average. The stock has been trying to work its way back since gapping down from above $53 with falling fertilizer prices at the end of July.

The company is scheduled to report fourth-quarter results on Feb. 11.

Total option volume in the name topped 43,000 contracts yesterday, about 8 times its daily average for the last month. Overall calls outpaced puts by more than 6 to 1.


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