In morning trading on Nov 10th, the Mosaic November 40 strike call option stands out, as 1300 contracts have changed hands. Last week we wrote an article wondering if the $40 level was beginning to become a psychological price point for investors. Today Mosaic had a hard time bouncing through the $40 level and has since leveled off.

On the put side of the equation 696 40 strike puts have traded, along with 623 35 strike level puts.

Mosaic is to volatile of a stock to stay range bound between $33 – $42 for very long. Will the bears be able to keep Mosaic in the $35 and under range or will the Bulls pull Mosaic up and over the $40 level? With lower trading volumes in MOS shares over the past week one has to wonder have the hedge funds liquidated most of their positions in MOS? Depending on credit situations we could see either A) more hedge fund selling via credit and redemptions or B) Hedge fund long buying of shares.

For now the front month 40 strike MOS options remain an area of heavy interest for options traders.

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