American Dairy (ADY)
I mentioned this one back in February as a stock that I would like to start a position in again at around the $20 or less range. Back in 2008 when the Chinese milk scare annihilated every milk producing company in China ADY, a stock I owned at the time, quadrupled in price due to being the only major producer of milk products unaffected by the scare. It has retreated big time since then due in part to a bad quarter at the end of 2009 and even though the company has returned to it's profitable ways, and financial quarter, the stock has not.
My fellow investor and options specialist alerted me to the fact it is now below it's 52 week low and a prime candidate for selling a put spread. The only question now is do we play conservative with a 12.5/10 spread or play confident and put our money where our mouth is with a 15/12.50 spread? If you want to try and build an actual stock position than the Jan $12.5 put for $1.30 looks nice.
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