MON - Monsanto Company, together with its subsidiaries, provides agricultural products for farmers principally in the United States. It operates in two segments, Seeds and Genomics, and Agricultural Productivity.
The worldwide demand for agricultural commodities has is credited for creating inflationary pressures. The demand comes from both food needs as well as the Ethanol craze. Risks are that the demand for food subsides (unlikely) or that investors and consumers realize that Ethanol isn't the solution to the world's demand for oil. I have read that it costs a lot more to create a gallon of Ethanol than we all think. Support on the stock is at 114 (50 DMA) and then 106.5 (89 DMA).
We are selling the 105 strike due to the 110 strike providing a 13.8% max return while the 105 is 10%. I like further out of the money in this environment. I am going to look at presenting core and explore strategies. That means utilizing the sector ETF and adding the strongest in the sector via short put or subtracting the weakest via short call. The agricultural ETFs that MON may resemble are MOO and DBA.