Something’s Amiss on MON

Stock Down on No News

By Bryan Bottarelli
Tuesday, October 10, 2006 10:48 AM EST
Tue, 10 Oct 2006 15:48:00 GMT

Dear Bottarelli Research Member,

Something fishy is certainly happening today in Monsanto (MON — NYSE). One day prior to releasing earnings, the stock is down $2.30 on absolutely no news. Has someone leaked MON’s results? Is this an attempt for a slick trader to push MON lower — only for the sake of buying shares on the cheap prior to MON’s announcement tomorrow? Quite honestly, I don’t really know. All I do know that something doesn’t look right.

MON

For a stock to drop over $2.00 on no news exactly one day prior to earnings — it just doesn’t add up. Therefore, I’d like to do the best we can to maintain our position in the MON October 47.5 Calls (MON JW). I noticed a few contracts trade at our designated $0.65 stop, but this morning’s drop looks too orchestrated to be a natural market move. For those of you still holding the calls, I’ll continue to follow the position.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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