Schaeffer's Sentiment Snapshot: Potash Corp. of Saskatchewan (POT)

CINCINNATI--(BUSINESS WIRE)--Put players pummeled Potash Corp. of Saskatchewan (NYSE: POT) yesterday, as skepticism concerning the ethanol issue escalated in the wake of the latest report from the United States Department of Agriculture (USDA). After the release of the most recent estimates for corn supplies and ethanol demand, POT saw almost 41,000 puts cross the tape – more than doubling its average daily volume of fewer than 17,500 contracts.

Most of yesterday's bearish bets centered around the security's soon-to-expire January 2009 70 put, with nearly 5,000 contracts changing hands. This strike is home to significant put open interest in the front-month series, with roughly 6,865 contracts in residence. However, peak put open interest of nearly 9,000 contracts rests at the out-of-the-money January 100 strike, indicating that some of these pessimistic positions could be LEAPS.

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