Options: Mosaic Put-Buying Rises

By Jud Pyle, CFA, chief investment strategist for the Options News Network

Heavy put-buying activity in Mosaic(MOS Quote) converted some bulls to bears in the agriculture nutrients producer today.

One investor looking for downside protection amid MOS' slow and steady rally since the end of last year bought 10,000 Sept. 35 puts at $1.42 per contract. MOS shares are currently trading down $3.89 to $52.08 -- about 7% below yesterday's close. The Sept. 35 puts, currently home to open interest of 3,700, are currently up 45 cents.

MOS shares are up more than 100% since reaching a 52-week low on Nov. 20, when the stock dipped to $22.31. But in general, commodity stocks are taking it on the chin as the dollar rallies after a prolonged slide. Investors buying puts are bearish and betting that MOS stock will close below $33.58 (the strike price minus the premium the investor paid) come September expiration. ...