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AGU Bear Call Spread

A simple mean reversion setup in the stock price of Agrium Inc. AGU is developing. Agriculture stocks have been ripping higher the last month. Continued market weakness should lead to pullbacks in the stocks over the next few weeks. Calls are juiced right now on most Ag stocks, meaning spreads that take advantage of theta decay should be favored now.

Technically, the stock may have a bit more upside/consolidation in it, however a run higher above the $75 area seems unlikely as supply is beginning to outweigh demand.

SELL -4 VERTICAL AGU 100 OCT 10 75/80 CALL @1.15 LMT

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