DE Long Call Spread

Beyond Meat (BYND). I don’t get it. Well, actually I do. People like the texture of meat, and BYND’s product gets close to that without killing an animal by mixing up a bunch of non-meat stuff to replicate meat and selling it at a hefty price. Even KFC is getting on board. BYND is up 128% since it’s IPO on May 2. Everybody loves it. But it ain’t eating vegetables. Vegetables are delicious. Healthy. Potent. And cheap. They are the cornerstone of my post-cardiac-adventure diet. Me? I’d rather eat peas “straight up” rather than processed into a “Beyond Burger”. Either way, all this stuff has to be farmed, and what self-respecting farmer doesn’t drive a Deere? DE is down about 16% of its 52-week high in the past 6 weeks, hurt by the China trade news and lower grain prices. But the spike in /ZC, /ZS and /ZW might be favorable to DE, and a contrarian bull (the real meat kind) might consider a bullish strategy. If so, the long call vertical that’s long the 135 call and short the 145 call in the July expiration with 49 DTE is a bullish strategy that has a 60% prob of making 50% of its max profit before expiry and that generates $.15 of positive daily theta.

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