I may start posting the option trades that I am making on this blog. I would not recommend anyone trade these without following past performance, etc. Most people should not trade options (sometimes I include myself in this group), but as with any worthwhile pursuit, it takes dedication to become successful.
The trade I made today is to buy a July 80 Call option on AGU. AGU is a fertilizer producing company. In case you haven't noticed, the price of all grains have risen sharply in the last 2 years. This has created rising demand for fertilizers and farm equipment among other industries. The use of ethanol in fuel is a related issue and I believe it to be a grave mistake conceptually and a bigger mistake from a policy standpoint.
Fertilizer stocks have been the best performers for the last year or so. AGU recently broke out of a price basing pattern. Then it pulled back to the breakout price level. It announced earnings today and bested expectations and offered strong guidance. I believe based off the price pattern and fundamental trend that this stock will likely move above 96 dollars in the next month or so. The breakeven point for my option is around 89 dollars.
The purchase price for the option was 9.10.
Pete
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