Monsanto Planting Seeds for Further Gains?

Monsanto, (NYSE: MON) a maker of agricultural products, is seeing heavy call activity today on heavy stock volume, following yesterday’s testing and breakout above the 50 day sma. The front month 75s and 80s are catching bids, as well as Dec. 80s and 85s and a smattering of volume across multiple strikes in Jan.

Jim Cramer was expounding about a break-out in Agricultural stocks last night (as well as Tim Seymour on Fast Money) and I am right there along with them. Money managers are looking for the underperforming sectors and flooding them with money because: 1.) they need to put money to work before year end and 2.) everything else has run so high, so fast.

I suggest selling the Dec. 75 Put and buying the Dec. 85 call for a net credit of 0.50-0.52.