Comments on: Bad Timing on Monsanto http://mytradersjournal.com/stock-options/2009/05/27/bad-timing-on-monsanto/ Investing in Stocks Through Options Fri, 27 Jan 2012 21:33:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2009/05/27/bad-timing-on-monsanto/#comment-6004 Alex Fotopoulos Thu, 28 May 2009 00:24:59 +0000 http://mytradersjournal.com/stock-options/?p=2540#comment-6004 Yep, we think alike. If it's at 81-82, I'll probably sell an 80 strike covered call to give me a better shot at a profit overall. I'd take a loss on the stock if called away, but would have a fat premium at 80 if it was ITM. Yep, we think alike. If it’s at 81-82, I’ll probably sell an 80 strike covered call to give me a better shot at a profit overall. I’d take a loss on the stock if called away, but would have a fat premium at 80 if it was ITM.

]]> By: Ronan Mc Grory http://mytradersjournal.com/stock-options/2009/05/27/bad-timing-on-monsanto/#comment-6001 Ronan Mc Grory Wed, 27 May 2009 19:52:57 +0000 http://mytradersjournal.com/stock-options/?p=2540#comment-6001 Sorry to hear about the bad timing of your trade. It happens to all of us but is more annoying when the timing is less than a day off. MON is taking a serious beating today (now at $79.86). However, it is a good company and should come back a little over the next three and a half weeks. It's doubtful, but possible, that it'll come back to the $85. Even if it doesn't, you max loss to the downside appears to be $250 right down to a share price of $75. Also, if the share price stays in the $80 - $82.50 range, you should have no problem recouping your $250 with a Covered Call at the 85 strike. I've considered selling options on this stock the past but, at a price of $85, the $8500 cost of 100 shares would make it too large a proportion of my portfolio. I've also considered buying a smaller number of MON shares direct. However, I like the flexibility offered when holding shares in batches of 100. Sorry to hear about the bad timing of your trade. It happens to all of us but is more annoying when the timing is less than a day off. MON is taking a serious beating today (now at $79.86). However, it is a good company and should come back a little over the next three and a half weeks. It’s doubtful, but possible, that it’ll come back to the $85. Even if it doesn’t, you max loss to the downside appears to be $250 right down to a share price of $75. Also, if the share price stays in the $80 – $82.50 range, you should have no problem recouping your $250 with a Covered Call at the 85 strike.

I’ve considered selling options on this stock the past but, at a price of $85, the $8500 cost of 100 shares would make it too large a proportion of my portfolio. I’ve also considered buying a smaller number of MON shares direct. However, I like the flexibility offered when holding shares in batches of 100.

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