Salmon Jumping: Materials

Materials is a target rich environment if you buy into the deflation thesis or want to hedge it. Energy is the top pick, but some of these stocks are boring sleepers that aren't heavily traded. That makes for illiquid options, but also sometimes underpriced options. Some of the options in the materials sector are dirt cheap if you assume deflation. I skipped any chart that didn't look toppy, but the top-10 are almost all ugly. Newmont is included, even though I have calls, because it could be cut in half in a deflationary panic. Note that I expect Newmont would outperform most commodities stocks in this scenario. Purple line on IFF is a regression line for the whole chart. Individual targets after the jump.

Water

The five largest holdings: