Mike Khouw's Monsanto (MON) Trade

On CNBC's Options Action, Mike Khouw and Carter Worth suggested that investors should consider a bullish bet in Monsanto Company MON. Carter Worth analyzed the charts of Monsanto (MON), and spotted a cup and handle pattern. He thinks that Monsanto (MON) could move to $82. Mike Khouw said that anything that is associated to agriculture has some strength. He added that Monsanto (MON) rallied recently, and it is currently trading at 30 times earnings. It is not cheap, and if you want to make a bullish bet you should use options. Specifically, Mike Khouw wants to buy the April 75 call for $0.90. The break even for this trade would be at $75.90. Monsanto Company (MON) gained 1.26% on Friday, and closed at $73.17.