ad About options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick Potash (POT):
On Dec. 18, Mad Money host Jim Cramer said, POT dropped almost $7 on Friday, and this selling could continue on Monday. Investors who want to buy the stock should wait until Tuesday to do so. He thinks 2010 will be better for the agriculture group than 2009 was. POT shares were trading at $105.01 at the time of this report.
Bullish Option Trading Idea for POT:
Bull put spreads
Sell January 100/90 put spreads for $1.36 each
Net credit of $1.36
Maximum risk: $8.64 plus commissions
Maximum potential profit: $1.36 minus commissions
Breakeven: The strategy will be profitable if POT shares are trading higher than $98.64 at January expiration.
Bearish Option Trading Idea for POT:
Bear call spread
Sell January 120/130 call spreads for $1.10
Net credit of $1.10
Maximum risk: $8.90 plus commissions
Maximum potential profit: $1.10 minus commissions
Breakeven: The strategy will be profitable if POT shares are trading lower than $121.10 at March expiration.
Visit OptionsHouse and www.ONN.tv for new tools that can help you evaluate potential trades. Check out the ONN.tv OptionFinder to evaluate your own potential trades. Any questions? Give us your feedback and ask Jud all your pressing questions.
Duration : 0:2:21
excellent intonnage …
excellent intonnage very high quality.