Archer Daniels Midland Co. (NYSE: ADM) shares are trading higher nowadays as corn futures are trading higher. Corn futures are being sent up by rising oil prices, which increase demand for corn ethanol. whether you think that the company won’t fall by too much in the coming months, thereupon now could be a good day to look at a bullish hedged trade on ADM.

After hitting a one-year low of $30.20 in January, the stock hit a one-year high of $45.30 on Monday, which it has surpassed again nowadays. ADM opened that at $44.99. So far nowadays the stock has hit a low of $44.95 and a high of $45.99. As of 11:15, ADM is trading at $45.75, up $0.76 (1.6%). The chart for ADM looks bullish and regular, while S&P gives the stock a positive 4 STARS (out

For a bullish hedged play on that stock, I would consider a June bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn’t do what you think but still leverage nice returns. For that specific trade, we will manufacture a 7.5% return in just 6 months as lengthy as ADM is above $35 at June expiration. ADM would have to fall by more than 15% before we would start to lose money. memorize more about that type of trade here.

Continue reading Archer Daniels Midland (ADM) hits new high on rising energy prices

Original post by Brent Archer

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