Put Traders Should Keep an Eye on Mosaic Stock

Agricultural chemical stock Mosaic Co (NYSE:MOS) has been climbing since the start of the year, up 18% so far. The equity could be due for a short-term pullback, however, as its recent rally was just shut down by a historically bearish trendline.

Per Schaeffer's Senior Quantitative Analyst Rocky White, MOS is within 0.75 of the 126-day moving average's 20-day average true range (ATR) after remaining below it 80% of the time throughout the past two weeks and 80% of the last 42 trading sessions. This signal has occurred 17 over the past 10 years, after which the stock was lower one month later 76% of the time with an average 5.7% loss. A comparable move from the stock's current perch at $28.47 would put it at $26.84. 

Another point for the bears, Mosaic stock's 14-day Relative Strength Index (RSI) of 75.1 sits in "overbought" territory. 

Options look affordable, per the equity's Schaeffer's Volatility Index (SVI) of 39% that ranks in the 23rd percentile of its annual range. It's also worth nothing that MOS' Schaeffer's Volatility Scorecard (SVS) ranks at high 91 out of 100, indicating it has tended to exceed option traders' volatility expectations during the past year.