3 Options Trades You'll Get Paid to Make

• «

12% Monsanto STRIDES (MYX)

Before you make a single high-yield investment, you must read this.

The 12% Monsanto STRIDES due March 26, 2010 (MYX) are a way to play one of the strongest agricultural names within the broader commodity sector. All STRIDES are priced at $25 per share when brought to market, priced off the underlying stock that day. Shares of Monsanto (MON) were trading right around $100 per share at the time of the pricing, so you take $25, divide it by the price of MON, and you would receive 25 shares of stock if the STRIDES aren't called away before they mature.

Like any good investment, you want to take advantage of the stock when it's down, and MON shares are way off their 2008 highs, but have recently started to turn back up with the rally.

From the chart above, it is easy to see how interest swelled into shares of MYX recently with the bullish sentiment rotating back into agriculture stocks. If MON trades back up to $110 between now and March 26, 2010, shares of the 12% Monsanto STRIDES (MYX) will likely be called away at a 20% premium from where they traded today, not including the 12% in dividend income. Not bad for an income play.