Sell AGCO Put for Slight Loss
Sell to close the November 16, 2018 put on Agco Corporation (NYSE:AGCO) with a strike price of $55 at $1.90 or higher for a 10% loss. Symbol (AGCO181116P55)
The time value on these puts will evaporate quickly as we start the new expiration cycle. I still like the bearish farm trade but am looking for companies with more domestic exposure. AGCO’s results have been helped by international orders, where inventory is much older and in need of replacement.
The other two legs of this bearish farm trade did better, Lindsay (NYSE: LNN) puts gained 11% and the Titan Machinery (NSDQ: TITN) rose 30%.