MON – Monsanto Co. – Near-term bulls dominated activity in Monsanto options today. Shares of the agricultural products provider increased as much as 3.8% during the session to reach an intraday high of $59.43. Investors expecting Monsanto to extend gains through September expiration picked up in- and out-of-the-money call options. Call buyers purchased approximately 1,100 now in-the-money contracts at the September $57.5 strike for an average premium of $1.56 each. Investors long the calls are poised to profit should Monsanto’s shares exceed the average breakeven price of $59.06 through September expiration day. Bullish sentiment spread to the higher September $60 strike where some 5,700 calls were coveted at an average premium of $0.37 a-pop. Traders holding these contracts make money if the seed producer’s shares inch up 1.6% in the next several days to trade above the average breakeven price of $60.37 by expiration on Friday.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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