Mosaic Options Pop on Cargill Rumors

Mosaic is drawing heavy options activity amid rumors that the fertilizer company will be taken over by agricultural giant Cargill.

The average daily turnover for Mosaic calls has been 10,800 contracts for the past month, but some 46,000 calls traded by Friday afternoon alone at various strikes, according to OptionMonster's tracking systems. MOS shares popped along with that activity, closing the day up 8.55 percent to $43.05.

The stock has been trying to break up through its recent highs near $50, posting yet another higher low last Monday. It has been in a steady uptrend since bottoming at $21.94 in late November, though still far below the high of $163.25 set back in June.

The rumor is that privately held Cargill might purchase the 35 percent of Mosaic that it does not already own. Another possible reason for Friday's action is Mosaic's scheduled participation in the Credit Suisse 14th Annual Global Ag Productivity Conference on March 10 in London.

(Disclosures: I own MOS stock)


Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of