Goldman Sachs Suggests Buying Strangles on Monsanto

Goldman Sachs is out with a research report this morning, where it suggests that traders buy strangles on Goldman Sachs MON ahead of earnings. Goldman Sachs Chemicals analyst, Robert Koort, sees 18% upside potential to his $80, 12-month price target on Buy-rated MON. While every planting season is different, Goldman Sachs' five-year study of MON stock moves around June planting season shows that realized volatility tends to rise around the June planning data, which includes critical Crop Production, Grain Stocks, and Acreage reports, benefiting option buyers. Goldman Sachs suggests buying the June $65/70 strangle for $3.94. Monsanto Company, along with its subsidiaries, is a provider of agricultural products for farmers. The company's seeds, biotechnology trait products, and herbicides provide farmers with solutions that improve productivity, reduce the costs of farming, and produce better foods for consumers and better feed for animals.