In order to satisfy rising global food demand, the farming industry relies on companies such as Deere & Company (DE). The stock is at a decent buy point and has the potential to test the 100-level.
We like the March 95/100 Bull Call Spread where you Buy the March 95 Call and Sell the March 100 Call. Net debit is $1.80, which is the max loss. Max gain of $3.20 will be realized if DE trades at or above 100 by March expiration, giving a ~180% return (minus commissions).
DevTrade (Full Disclosure: Author long DE Call spreads at the time of writing)
Great find. Not sure how the heck you found it, but wall street sentiment is parallel to yours as per CNBC and Cramer’s lightning round.
They’re bullish towards 100+
Also…we should put a time-line for this trade…so when next week rolls around and we didn’t buy because we thought we lost our chance and you ask us….well….how the story goes.