10/21/2013 MON

Potash Corporation         NYSE          POT

      

Close Friday 10/18/2013 32.14

Pot has been in a downtrend after topping out at 63.97 in mid-February of 2011 falling to a low of 28.55 in early September ,stopping short of the of the 2010 lows of 27.80 the stock looks like it has started to base and is trying to rally to fill the gap on the daily charts at 36 level.

Support    31.05*   28.55/ 27.85**    15.75***

Resistance 32.86**   34.85* 36.80**    41.95***

Earnings est.  .41 due out on 10/24/13 before the open

                                                      Current Qtr       Next Qtr      Current YR         Next Yr

Average Estimate

0.41

0.49

2.40

2.35

There is a slight vol advantage in buying the Dec options and selling the Jan and mar options essentially creating a double call diagonal which is simply a variation of the regular butterfly.

Buy Dec 32 c Sell Jan 36 c Sell Mar 36 c Buy Dec 40 c             +1/-1/-1/+1

IV Dec    27.00      Jan 28.60            Mar   29.80

Avg daily volume 6,135,000

Should be a descent performer despite the poor earnings reports we have seen as of late.

*Disclaimer: This is not a recommendation. All trading entails risk. Anyone employing any strategies and having limited knowledge of options trading should consult with a FINRA licensed professional.