OptionsHouse

Options Trading News

January 30, 2013  Wed 4:15 AM CT

DE: SEE CHART GET CHAIN FIND STRATEGIES
Deere has been growing international sales, and its stock has been running rapidly.

optionMONSTER's Heat Seeker tracking system detected heavy trading yesterday in the February 100 calls for $0.56 to $0.60 and the February 105 calls for $0.19 to $0.23. In some cases, traders bought one and sold the other to leverage a sprint higher in the next two weeks.

Long calls lock in the price where investors can buy shares, so they can generate significant leverage in the event of a rally. It would take quite a move to reach those $100 and $105 strike prices, but yesterday's traders are willing to take that risk. (See our Education section)

DE climbed 1.13 percent to close the session at $95.05, another 52-week high. The company, which is the largest supplier of agricultural equipment, has been building factories and research centers in emerging markets and gaining revenues from international sales. JP Morgan upgraded the stock early this month and raised its target to $90.

Calls outnumbered puts in the name by almost 23,000 to 9,000 yesterday, a clear reflection of the bullish sentiment. Total option volume was 5 times greater than average.

Disclosure: I own DE calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »