Potash Option Update: Oct 21st 2008

 

 

End of the session look into Potash Corp option activity. Did put buyers make their presence known on a down day?

An awful day for POT sent the stock down to a close of $73.36. The stock closed at $75 in after hours trading and we will use this number as todays ATM (at the money) call. Open Interest remains constant and will be updated in the next update article.

Our mid-day calculations (as of 1pm)

Call Volume (75 – 95 strike): 5209

Put Volume (75 – 55 strike): 4013

Now onto our full day market closed option numbers for Oct 21st, 2008

Call Volume (75 – 95 strike): 8289 (59% increase vs 1pm)

Put Volume (75 – 55 strike): 5522 (37% increase vs 1pm)

What Changed?

Even with the downward nature of Tuesday’s session options investors increased their call option purchases at a greater rate than put players. Optimism remained evident in the options market, even with stock shedding 10%, although some of the purchasing may be attributable to the 30 – 40% decline in option prices vs Monday’s session.

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