Thursday July 2, 10:50 PM
STOCKS NEWS US-Potash gets large upside call fly spread
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1729 ET 02July2009-Potash upside call fly suggests more gains
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Shares of top fertilizer company Potash Corp of Saskatchewan rose 5.61 percent to $96 on the NYSE. In the stock's options, trading
was active in the July calls after a large so-called $110-$120-$130 call
butterfly was executed in the July contract at 55 cents per spread, said Steve
Claussen, chief investment strategist at OptionsHouse. 'The fact this is
trading in the soon-to-expire July series while the stock is still well below
the $110 strike indicates a bullish slant in the immediate term for Potash,'
Claussen said. The spread appeared to have been bought 10,000 times, said
Frederic Ruffy, option strategist at WhatsTrading.com. 'This strategist must be
really high on Potash because the maximum payoff happens if the stock closes at
$120 per share at the July expiration,' Ruffy said. The break even point of the
trade is $110.55, he added.
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