NEW DIRECTIONAL CALL PLAYS

Deere & Co - DE - close: 85.89 change: +0.90

Stop Loss: 84.95
Target(s): 89.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DE's rival CAT reported earnings this morning that beat by 30 cents but missed on revenues. CAT also lowered their guidance. Both CAT and DE could have seen big declines on CAT's revenue miss and disappointing guidance but instead traders bought the morning gap down. This might suggest all the bad news has been priced in.

DE looks a lot stronger than its rival. Today's high was $86.23. I am suggesting a trigger to buy calls at $86.30. Our target is $89.90. We'll use a stop loss at $84.95.

Trigger @ 86.30

- Suggested Positions -

buy the NOV $87.50 call (DE1217k87.5) current ask $1.10

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 3.3 million
Listed on October 22, 2012