This week, we look at Potash Corp. (POT). Last month the stock bounced nicely off of a well developed role reversal support level around the 38.50 level and I’m seeing not one, but two, weekly bullish engulfing patterns. My target price is the role reversal resistance line up at the $51 price range. Buying these leap calls should put us in nice position for a rally but we still need top protect this position should the stock break down below $37.
Next week is the best time of the month for option traders. We get to roll our positions while taking in generous credits to our accounts, and we adjust our trades in order to gear up for next months option chain. We have been able to profit from a good number of our positions and I expect to see many more profitable trades for the rest of the year. Stick with the Options Oracle trades and I think you will be happy.
