Wednesday, November 18, 2015

POT Income on weakness

Hard to believe I am doing this again with POT, Potash.   The calls are compelling when you add in the dividend.   Selling a January 15, 2016 call.  This call is out far enough that I should receive the dividend and the call premium.

Call premium is $.38 for a $23 strike price.   Combine it all together and if you stock is taken, your gain is over 17%.   If your shares are not taken and POT survives, your income over these next 58 days is 3.5%.  

See the table below.