A trade is using stock and options to position for a big move in Mosaic.
MOS gained 3.44 percent to $48.07 yesterday as it recovered from a 52-week closing low $45.68 on Thursday. Shares of the fertilizer company have been trending lower since trading just under $54 on the first day of the month and near $60 in late March.
optionMONSTER's Depth Charge systems shows that 5,000 July 45 puts were bought for $2.38. There was no previous open interest at the strike, so this is a new position.
Shortly after that activity, 185,000 shares were bought for $47.2567. Combined with the long puts , this creates a delta-neutral trade that can profit if MOS moves sharply higher or lower. (See our Education section)
More From optionMONSTER
Asian shares tumbled to nine-month lows on Thursday as slowing Chinese manufacturing activity exacerbated sentiment …