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February 1, 2010 8:25 EST Related Symbols: DE
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
Find out Jim Cramer’s take on the equipment manufacturer, and trades for option investors.
Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – Deere & Co. (DE):
On Jan. 28, Mad Money host Jim Cramer said he thinks investors can make money if they take a six- to nine-month perspective on DE, but he also warned the stock is headed down in the short-term.
BULLISH Option Trading Idea for DE:
Put calendar spread –
Maximum risk: $47 plus commissions
Maximum potential profit: Depends on time, minus commissions
Breakeven: The strategy will be profitable if DE shares are trading higher than $47 at September expiration.
BEARISH Option Trading Idea for DE:
Put one-by-two–
Maximum risk: $39 plus commissions
Maximum potential profit: $6 minus commissions
Breakeven: The strategy will be profitable if DE shares are trading higher than $39 at September expiration.
For more trading ideas and breaking news on the options market, stay tuned in to The Options News Network.
