Editor's Desk
A Big-Gains Call on RealMoney
David Morrow
01/07/09 - 02:01 PM EST
Profits are tough enough to pocket in this market, and I just hate it when some of our readers miss out. For example, subscribers to RealMoney received a recommendation yesterday that brought in a bonanza in less than 24 hours.
At noon yesterday, Jim Cramer recommended buying January $65 call options (MONAM) in Monsanto(MON Quote) for a trade in his blog. (Jim called them "mouthwatering," as a matter of fact.) Monsanto was scheduled to post quarterly results this morning, and Cramer expected an upbeat report -- especially because Monsanto's management had scheduled a road show with investors next week.
The options were priced at just above $8 at the time Cramer made his blog post and closed yesterday at $9. Meanwhile, Monsanto's shares were trading around $72. After the ag chemicals producer delivered a blowout fiscal first quarter this morning, Monsanto's shares opened nearly 10 points higher, sending the value of the options contracts as high as $19.70.
Several times this morning, Cramer recommended that RealMoney subscribers lock in their gains on the MONAM options, after more than doubling their investment in less than a day.
Here's a link to Cramer's post from yesterday.
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Dave Morrow
Editor-in-Chief
TheStreet.com