Mosaic (MOS) announced strong second-quarter results yesterday after the close. While revenue and earnings fell short of Wall Street’s expectations, the stock is down only slightly this morning. The muted response is likely due in part to the company’s comments that fertilizer demand will be supported by tight crop supplies into next year.
We were called out of our MOS shares last week, incurring a net debit. I am recommending an August monthly put to sell that is roughly 12% out of the money. If the stock moves higher, we may roll the put up to generate more cash and further reduce our net debit.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $51.42
Net Debit: $10.47
Action: Sell to open the MOS Aug Monthly (8/19) 45 Put for around $0.52, but adjust as needed to sell a put today
New Net Debit: $9.95