In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:
KLAC, XOP, LLL, CLR, CXO, XLE, ROK, M, MGA, CMI,
NEW DIRECTIONAL CALL PLAYS
Deere & Co - DE - close: 91.90 change: +0.51
Stop Loss: 89.75
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 14th
New Positions: Yes, see below
Why We Like It:
DE is in the industrial goods sector. The company makes agriculture, turf, construction, and forestry equipment.
Both DE and its rival CAT have been showing strength lately. DE spent a good chunk of March consolidating sideways in the $87-90 zone. Now it appears to be in breakout mode with a rally past its December-January highs.
In DE's latest earnings report the company gave cautious guidance suggesting that 2014 revenues would not exceed 2013's record setting pace. Yet this has not stopped the rally in DE.
Tonight we are suggesting a trigger to buy calls at $92.25. There is potential resistance near $95.00 (near the early 2013 highs) but we're aiming for $98.50. Plan on exiting prior to DE's earnings report on May 14th.
Trigger @ 92.25
- Suggested Positions -
Buy the May $95 call (DE1417E95) current ask $0.94
Entry on April -- at $---.--
Average Daily Volume = 3.0 million
Listed on April 02, 2014