Moderate bullishness in Deere & Co. (NYSE: DE)

Deere & Co. (NYSE: DE) has not yet announced an earnings release date, and the company has not announced any news today. At least one investor, however, boosted put volume in the equipment manufacturer by selling a longer-dated spread.

We saw an investor sell the January 40-50 put spread 10,000 times for roughly $3.77 per spread. So far on the day, the January 40 puts are unchanged at around $3 per contract, while the January 50 puts have risen 10 cents to $7.10 per contract. The lower-strike puts are home to current open interest of 3,781 contracts, while the higher-strike puts are home to current open interest of 2,388 contracts.

Investors who sold this put spread are moderately bullish on DE, and expect the company’s stock to closer higher than $46.23 (this trade’s breakeven price) at January 2011 expiration. Maximum gain on this trade is the premium collected ($3.77 per spread), which investors will achieve if DE shares are higher than $50 at January expiration, and maximum risk on this trade is $6.23 per spread (the difference between the strike prices minus the premium), which investors will incur if the stock drops below $40 per share.

The market expects DE to announce earnings figures sometime around Feb. 17 (analysts expect earnings of 17 cents a share). DE shares are currently trading around $50.80, down 30 cents so far on the day, which means investors need the stock to either hold or surge higher than their current level.

Heavy put-spread selling action does not necessarily mean investors should run out and buy DE shares, but keep in mind that someone in the options pits today is calling for the stock to hold its current levels throughout the next year.

For more on DE:

Trading Idea: A Deere & Co. (NYSE: DE) bull call spread

Deere & Co. braces for shareholder vote on executive pay; shares up

Deere & Company (DE) bull put spread