CNBC Options Action's Brian Stutland thinks that Japan will have to import food from the United States, because of concerns that local supplies might be polluted. He believes that Archer Daniels Midland Company ADM is in a good position to profit from these events.
Brian Stutland added that he is very bullish on this stock, and he believes that the only way it could trade lower is if another global recession happens. He wants to buy the June 35 call in Archer Daniels Midland Company (ADM) for $2.45, and sell the June 40 call for $0.55. This trade would cost him $1.90, and his break even would be at $36.90. His maximal profit would be $3.10, and he thinks that you should allocate 1%-2% of your portfolio in this trade.
Archer Daniels Midland Company (ADM) gained 0.45% in the regular trading session, and it added 0.58% in the after hours.
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Posted In: CNBCLong IdeasOptionsMediaTrading IdeasAgricultural ProductsBrian StutlandConsumer StaplesOptions Action
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