Option buyers certainly came out winners following last weeks article. Last week (monday, Jan 4th) we pointed out some bullish call buying on front-month (jan) option contracts at and around the current share price. Here’s the screen capture we used for volume and pricing of the options in question:

The following day shares took a 5% jump based upon a price upgrade (up to $135) by Credit Suisse. Here’s a quote from the analyst:

“We had previously been cautious on the potash-exposed names owing to the lack of pricing visibility in the market,” Yip wrote in her research note. “Now, with the Chinese contracts finally settling, we believe investors have a solid entry point to buy into the industry’s solid long-term fundamentals.”

Shares continued to rise over the next few sessions, helped as well by Russian Potash sales to China at $350 per tonne. Many see this sale as setting the market for the upcoming year.

Potash shares reached a weekly of $126.47 during Monday’s (11th) trading session. Option buyers on the 4th hit a ‘triple’ if they sold at the high on the 11th. Not a bad return. We’ll keep our eyes glued to upcoming option volume swings to see if another possible ‘tell’ occurs.

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