April 19, 2011 10:30 AM | 2 min read |
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Grocery shoppers across America are acutely aware of the rising cost of feeding one's family. Food prices rose 5% last quarter, and show no sign of turning around any time soon. Add in high fuel costs, bizarre weather patterns that have halted or postponed certain growing seasons, and disasters across the world, and you have a recipe for someone, somewhere to make a profit.Could the beneficiary of all this chaos be you? Possibly. Here are five stocks to consider watching while food pricees rise.
Monsanto (NYSE: MON): Higher corn prices have led many farmers to increase seeding, which could benefit genetically modified seed producers like Monsanto. At post time, Monsanto is trading up $0.90 to $67.08, a gain of 1.36% on the day.
Agrium (NYSE: AGU): Another stock with the potential to be interesting is fertilizer maker Agrium. This growing season, in particular, provides some potential opportunities for fertilizer manufacturer's to profit. Farmers wishing to cash in on high food prices will need to plant every inch of field, as well as maximize the yield per acre. The best way to do that? Spray additional fertilizer. At post time, Agrium is trading up $2.12 to $90.32, a gain of 2.4% on the day.
iPath Dow Jones-UBS Agriculture Total Return Sub-Index ETN (NYSE: JJA): Investors looking to capitalize on rising food prices may want to look at this ETF, which cover a variety of agriculture commodities expected to rise in price this year. At post time, JJA is trading up $0.14 to $65.25, a gain of 0.22% on the day.
Archer Daniels Midland (NYSE: ADM): ADM is an interesting possible play for a rising food prices market, as they utilize technology to convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical, and energy uses. They also operate a transportation network, connecting crops and markets across the globe. Will high oil prices cut into profits, or will they ride a wave of higher food prices to glory? Time will tell. At post time, ADM is trading up $0.23 to $34.68, a gain of 0.67% on the day.
McDonalds (NYSE: MCD): Fast food restaurants seem like an odd play in a rising food price market, as they operate on tight margins and have little room to raise prices. What they do have is volume, and given a choice between a $20 home cooked meal or a $1 hamburger, some families will vote with their pocketbook. It's certainly a play worth thinking about. At post time, MCD is trading down $0.39 to $76.61, a loss of 0.51% on the day.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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