Deere & Co - DE - close: 93.89 change: +1.51

Stop Loss: 92.49
Target(s): 99.70
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Technology companies have been hogging the spotlight this week but the long-term trend for DE is still bullish. Shares just bounced back above their 50-dma and DE is consolidating under resistance near $95.00. If the stock can breakout above $95 again it should have a good shot at climbing toward $100.

I am suggesting we buy calls on DE with a trigger to open positions at $95.25. If triggered our target is $99.70. We will not hold positions over the mid May earnings report.

NOTE: Traders should be aware that DE's rival Caterpillar (CAT) reports earnings on April 29th. CAT's results could have a big impact on DE.

Trigger @ 95.25

- Suggested Positions -

Buy the May $97.50 call (DE1121E97.5) current ask $1.24

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 05/18/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on April 20th, 2011