Fertile Ground

A couple weeks back, I wrote about options traders' obsession with POT. But Potash isn't the only fertilizer catching their fancy. Mosaic calls were somewhat active today as option participants bet on more upside, with the Jan 10 65-, 70- and 75-strikes all seeing some action today.

Back in October, the company was subject to takeout talk after some comments from the CEO. At the time, Options Action contributor Dan Nathan suggested a potential options trade to profit from a potential merger, and although said deal never came, the strategy has proved successful all the same.

Specifically, Dan recommended buying the December 55/60 call spread, which at the time costs $0.90 in a trade that paid off if Mosaic went above $55.90 by December expiration.

Right now, that spread is trading for about $3.10, meaning there is $1.80 left so long as MOS stock can stay above $60 bucks by expiration. And Dan is sticking with the trade.

"Keep some on as the stock is finally breaking out after lagging the broader market for the last few months," said Nathan.

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