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As Nick noted earlier, Potash Corp. of Saskatchewan (POT) was targeted by a wave of put buying on Monday. During the course of the session, option traders on the International Securities Exchange (ISE) bought to open 1,382 puts, compared to 132 calls.
Yesterday's bearish bias stands in contrast to recent activity on the ISE, where POT has garnered a 10-day call/put volume ratio of 1.44. However, short-term option players are firmly aligned in the skeptics' camp, as the stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.26, just 1 percentage point from a new 52-week high.
Peak put open interest in the front-month series lies at the deep out-of-the-money 70 strike, with 8,158 contracts in residence. The 75 and 80 strikes are also popular, with both of these out-of-the-money options sporting open interest of more than 7,000 contracts.
Just as put players are betting on a plunge, call traders are hoping for a breakout rally. Peak call open interest can be found at the 95 strike, with 9,218 contracts in residence.
Meanwhile, on the charts, POT is bouncing between newfound support from its 80-day moving average and resistance in the 90-to-95 neighborhood.