China recently learned how delicious bacon really is and in turn demand for meat has doubled in the past 2 decades. This bodes well for farm equipment manufacturers like Deere (DE). I think this also is good for Monsanto (MON) as this increased demand will almost certainly increase demand for their genetically modified seeds.
Disclosure: I may or may not own any of the securities mentioned and am not an investment advisor. Please do your own due diligence before investing in any securities mentioned.
Showing posts with label MON. Show all posts
Showing posts with label MON. Show all posts
Monday, April 11, 2011
Thursday, January 13, 2011
Farmville profits with Monsanto
Buy/write on Monsanto:
This one has had quite a run, but I still believe this will be a profitable trade.
Buy 100 monsanto (7,478)
Sell 1 Jan 12 72.5 Put 980
Sell 1 Jan 12 75 Call 995
-------------------------------------
Total outlay 5,503
Profit if called in Jan 2012: 1,980/5,503 = 36% plus any dividends collected will increase your percentage.
If monsanto is below 72.5 on Jan 12, you can either roll your short put out to a later date or buy 100 more shares at a net cost of 62.7. This trade is still profitable down to the 60ish price.
This one has had quite a run, but I still believe this will be a profitable trade.
Buy 100 monsanto (7,478)
Sell 1 Jan 12 72.5 Put 980
Sell 1 Jan 12 75 Call 995
-------------------------------------
Total outlay 5,503
Profit if called in Jan 2012: 1,980/5,503 = 36% plus any dividends collected will increase your percentage.
If monsanto is below 72.5 on Jan 12, you can either roll your short put out to a later date or buy 100 more shares at a net cost of 62.7. This trade is still profitable down to the 60ish price.