Tuesday, May 20, 2008

MOS Short Selling...

I've got to head to bed real soon so I'm going to keep this short. My brother loves Mosaic, a fertilizer company. Their performance is tightly bound to Potash prices so it presents an interesting study. Every time they've had a 4%+ drop in the past six months, it's been followed by another nearly 4% drop, at least in the intraday.

So I'm banking on that happening again.

Here's my play:
Sell -39 MOS @ 122.75
Buy +39 MOS STP TRG+126.00
Buy +39 MOS TRSTP MARK+1.50% WHEN MOS MARK AT OR BELOW 120.00

Maximum loss = $126.75, excluding any gaps and commissions.

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