NEW DIRECTIONAL CALL PLAYS

Deere & Co - DE - close: 83.30 change: -0.01

Stop Loss: 79.40
Target(s): 84.50, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Investor optimism for the global economic recovery in 2011 is very evident in stocks like DE and CAT. Shares of DE rallied to new two and a half year highs in December. Now the upward momentum has slowed a little bit but the trend is still up. Broken resistance near $80 and the rising 50-dma, which is nearing $80, should offer some support. I am suggesting we buy calls on a dip at $80.50. If triggered we'll use a stop loss at $79.40.
FYI: The Point & Figure chart for DE is pretty bullish with a $100 target.

Buy-the-Dip Trigger @ 80.50

- Suggested Positions -

Buy the 2011 February $80 calls (DE1119B80)

- or -

Buy the 2011 February $85 calls (DE1119B85)

Annotated Chart:

Entry on December xxth at $ xx.xx
Earnings Date 02/16/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on December 30th, 2010