NaughtyPines

MON -- 10/6 EARNINGS PLAY

NYSE:MON   MONSANTO COMPANY
MON announces earnings on 10/7 before market open, so you will want to put on a play before the 10/6 NY close to take advantage of the volatility contraction post-10/7 earnings . The stock has been hammered since last earnings , which might lead you to a bullish bias here, in which case you can skew setups to the call side to take advantage of that bias. As usual, though, I'm going neutral ... .

As with the YUM play described below, I would look to use either a short strangle or iron condor to play this particular earnings .

SHORT STRANGLE:

Oct 16th 80/93.5 Short Strangle
Probability of Profit: 75%
Max Profit: $98/contract
Buying Power Effect: Undefined
Break-Evens: 79.02/94.48

IRON CONDOR:

Oct 16th 77/80/93.5/96.5 Iron Condor
Probability of Profit: 71%
Max Profit: $50/contract
Buying Power Effect: $250/contract
Break-Evens: 79.50/94

Look to take these off at 50% max profit ... .
Did not get a fill ... . Spreads were awfully wide, and I wasn't going to chase price to get a fill.
Reply
English
English (UK)
English (IN)
Deutsch
Français
Español
Italiano
Polski
Türkçe
Русский
Português
Bahasa Indonesia
Bahasa Melayu
ภาษาไทย
Tiếng Việt
日本語
한국어
简体
台灣
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out