Add POT Calls

New 52-Week High in Sight

By Bryan Bottarelli
Friday, August 24, 2007 12:41 PM EDT
Fri, 24 Aug 2007 16:41:00 GMT

Dear Bottarelli Research Member,

While the Cummins (CMI – NYSE) calls that we entered this morning continue to tick higher, let’s go ahead and add another call play on Potash of Saskatchewan (POT – NYSE) to our ledger.

POT

Founded in 1953 and is based in Saskatoon, Canada, POT produces and sells fertilizers, animal feed supplements, and industrial acids. As you can see from the chart above, the stock hit a new 52-week high on August 8th, but has since fallen back and found support just under its 50-day moving average. Now that the stock has bounced back above this critical level, all signs point to a re-test (and possible break-out) above the $92.82 level, so let’s profit off this upside move using September calls. Here’s the play:

PLAY: Buy the POT September 90 Calls (PYP IR) at or under $2.90, good for the day. Current bid/ask spread is $2.60 to $2.80. Place a protective stop limit at $1.40.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From August 2007