Call it a game of follow the leader today. George Soros buys Potash shares and now everyone is clamoring to buy POT.
"It is interesting that the ‘ags’ are higher today even as equity prices are weaker, and they are stronger even as the dollar is a bit firmer of late," said commodity King, Dennis Gartman of the Gartman letter.
Last night's disclosure that billionaire investor George Soros increased his steak in the company by nearly 50%, picking up nearly one million shares in the last quarter, has sent the stock up by more than 2% today.
But while equity traders are excited, options traders are in a virtual tizzy, with investors buying a respective 11,000 and 8,000 calls in Potash at the 115-strike and 120-strike in the November expiry.
"What's interesting here is that much of this is coming ahead expiration. These things only have a few days left, so that's pretty bullish," said Mike Khouw, Options Actioncontributor and director of equity derivative trading over at Cantor Fitzgerald.