Trying to perfectly time a bottom in the market, a sector or a stock can make a fool of any of us. Even investing gurus like Warren Buffett rarely try to call one.

#-ad_banner-#But that doesn’t mean investors can’t uncover opportunities on the way down. Short-term panic often leads to discounted buys in companies with solid long-term fundamentals.

One of my favorite options strategies allows traders to get into stocks at an even cheaper price or book a quick profit if shares turn up.

7 Billion Hungry Mouths and Counting
Exceptional global harvests pushed grain prices down to multiyear lows in 2014 and dragged related stocks down. PowerShares DB Agriculture ETF (NYSE: DBA) fell 15% last year from its April high and is now 47% below its 2008 high.

Some may be worried about a farm bust like we saw in the 1980s. While another record harvest this year could send prices even lower, the 2014 Farm Act’s safety net provision should prevent massive losses. University of Nebraska economist Brad Luebben expects substantial payments to go out to farmers this year if prices stay low.

U.S. farm balance sheets are also much stronger now than in the past. The amount of debt relative to farm assets peaked around 22% in 1985 and has fallen steadily to just about 11% last year. Despite lower crop prices, government payments and increasing livestock sales boosted U.S. farm cash receipts to a record last year. 

I am not calling a bottom in grain prices or a rebound in agriculture, but there is a very good reason to start looking at the space. Well, 7.29 billion reasons actually. 

While the world hasn’t fallen into catastrophe as Malthus predicted in the 18th century, global consumption of grains has increased to a record 4.9 million tons annually. As the world’s population grows, so will its need for agricultural production. 

And there is a huge opportunity in emerging markets where farm productivity lags developed regions. 

Agriculture in the United States accounted for just 1.3% of GDP in 2012 with about 2% of the workforce employed in the sector. Compare that with countries like Brazil, which employs 17% of the workforce for 6% of the economy, and China, which employs 34% of the workforce for 9% of the economy. The average U.S. farm is 441 acres compared with the average Chinese farm at 1.2 acres and an average of 3 acres in India.

As emerging markets develop, farm sizes will grow and fewer people will be employed in the sector, but it will take a huge jump in productivity to get there. 

And one company is primed to offer that boost in productivity.

Caught in the Headlights
Shares of Deere & Company (NYSE: DE) have held up better than the sector but still only offered a 6% annualized return over the past three years. After a tough 2014, management is projecting equipment sales will be down 15% this year and net income will drop 40% to $1.9 billion. 

But just as the industry will eventually rebound, so will the company’s profits, and Deere investors have several factors working in their favor in the near term. 

Construction and forestry equipment accounts for 20% of net sales, and this segment is expected to see a 5% increase this year following a 12% increase in 2014. John Deere Financial is expected to add $610 million to the bottom line as well. 

Compared to previous ag industry downturns, Deere is forecasting a more moderate decline on cost controls and a broad-based business line. 

While North America still accounts for 61% of net sales, the company has a strong and growing position in emerging markets. Sales in Latin America jumped at a 14% compound annual rate since 2007 and now account for 12.4% of total net sales. Sales in Asia-Pacific, mostly from China and India, have grown at a 10% annual rate since 2007 and account for 2.4% of total sales. 

The company still has $6.2 billion left in its December 2013 share repurchase authorization and pays a $2.40 per share annual dividend for a 2.6% yield. Deere has paid out 60% of cash from operations to shareholders over the past 10 years.

Short-Term Profits or Long-Term Position
Selling puts against a stock is one of my favorite ways to buy into long-term holdings. 

If you’re not familiar with the strategy, don’t stop reading here. Many people think options are too risky, but when used properly, put selling is a conservative, high-income strategy. 

If you’d like to remove your fear of options for good, I urge you to watch this free training video. In just eight minutes, an options expert with a 100% success rate reveals how she averages 53% annualized gains per closed trade — and how you could collect hundreds of dollars starting this week. Click here to watch.

Selling puts obligates us to buy shares at expiration if the price is below the option’s strike price. If that happens, I wanted to hold the stock anyway and I get a discounted price. If shares rise above the strike price, I keep the premium for a quick profit.

With DE trading for $92.43 at the time of this writing, we can sell the DE March 95 Puts for a limit price of $3.15 a share ($315 per contract).

If DE does not close above the $95 strike price at expiration on March 20, we will be assigned shares. Since we received $3.15 in options premium, our actual cost is $91.85 per share, offering a slight discount to the current price.

We want to make sure we have enough money in our account to cover the potential purchase. This means setting aside $9,185 for every put contract we sell, plus the $315 we collected from selling the puts.

If DE closes above $95 on expiration, we keep the premium for a gain of 3.4% in just 26 days. If we were able to make a similar trade every 26 days, we would generate a 48% annual rate of return.

While the strike price is just 3% above the current trade, there is still a good chance that we will have to buy the shares. If this happens, we can sell covered calls against the position to maintain monthly cash flow. 

The company has a healthy balance sheet and should do well in the long term. Selling options can be a great way to monetize the position until the industry rebounds.

And if you want to learn more about this strategy, don’t forget to check out this free webinar that reveals how one options experts has used it to close 85 straight winning trades. Click here to watch it now.

This article originally appeared on ProfitableTrading.com: Why I’d Bet on This Brand-Name Stock Even if the Sector Hasn’t Bottomed Yet​