Trade Idea: MOS Cash Secured Put With Free LEAPS Call (12-20-24) Reached Infinite Return 1-17-2025

Agriculture stocks have pulled back and are bottoming

Mosaic Company MOS 0.00%↑ produces agricultural products.

Agriculture stocks have declined significantly. However, MOS is near support, and these stocks have high upside potential, for example, in early 2022 when fertilizer prices skyrocketed.

Because of this, I want an uncapped upside while reducing my downside.

Unlike an ordinary cash-secured put (CSP), this trade has a limited downside and an unlimited upside. A normal CSP is only profitable up to the amount of the credit received. However, this trade profitability has been uncapped for over a year, and the loss is limited.

This is one of my favorite trades because it has an extremely high chance and an asymmetric risk reward.

Based on my research, over the next 12 months, this trade has at least a 95% chance of taking my initial investment off the table and has an unlimited upside. However, I expect volatility. The risk is in the trader, the execution, and the position size.

This is slightly more complicated than a normal CSP, but the call part is optional.

This is not financial advice. Please do your own research and do what’s best for you.

MOS Daily Chart

MOS declined with the market and is near support. This trade provides adequate time to be right, paying me to wait for a price spike due to positive time decay.

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