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Potash play

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July 31, 2013 – Comments (2) | RELATED TICKERS: POT , MOS , IPI

Well seeing all these potash companies getting crushed I decided to take a stake in POT and sold 10 Jan 28 2015 puts receiving a premium of $3.85.  So worse case I buy this stock for $24.15 or I keep $3,850.  I understand how there could be a pricing war which is why I went to 2015.  Was eying UAN as well but I want to see its earnings report first.

2 Comments – Post Your Own

#1) On August 02, 2013 at 9:31 PM, awallejr (78.92) wrote:

Sold some more puts and have the drypowder should stock drop more.  This stock is now actually becoming a yield play with a major stock buyback.  People should remember that POT sells mostly to US and Canada. I don't see the Russians disrupting that much at all.  The transportation costs from them would one-off any price savings.

In a market that keeps rising, take advantage of these, what I think are, contrived sector hits.  We saw it with LINE and MLPs, and now with AG.

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#2) On September 10, 2013 at 11:25 AM, awallejr (78.92) wrote:

For anyone who listened to me you might want to do some profit taking.  You can probably close this for 2.40, giving you a profit of over 37%.  I personally won't because I expect it to expire worthless by expiration and I really wouldn't mind being put the stock for about $24 a share.

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