Scott Nations Is Bearish On Monsanto (MON)

Scott Nations spoke on CNBC's Option Action about a bearish options strategy in Monsanto MON. This company has reduced its earnings estimates by 25%, and Scott Nations believes that Monsanto's (MON) core business is hurt by the competition from China. Scott Nations thinks that this stock is going down, and recommends a put spread in Monsanto (MON). He wants to buy October 50 put for $4.75, and sell October 42.5 put for $2.75. This trade would cost him $2, and the maximal profit from that trade is $4.75. Monsanto (MON) jumped 1.19% today, and closed at $50.87.