Turning to the calls side of the option chain, the call contract at the $100.00 strike price has a current bid of 88 cents. If an investor was to purchase shares of MON stock at the current price level of $98.69/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $100.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.22% if the stock gets called away at the June 14th expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if MON shares really soar, which is why looking at the trailing twelve month trading history for Monsanto Co., as well as studying the business fundamentals becomes important. Below is a chart showing MON's trailing twelve month trading history, with the $100.00 strike highlighted in red:
MON June 14th Options Begin Trading
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.