May 13, 2013 (Marketintelligencecenter.com via COMTEX) -- Deere & Co (NYSE:DE) closed Friday's trading session at $92.30. In the past year, the stock has hit a 52-week low of $69.51 and 52-week high of $95.60. Deere (DE) stock has been showing support around $90.45 and resistance in the $93.69 range. Technical indicators for the stock are Bullish and S&P gives Deere (DE) a positive 4 STARS (out of 5) buy rating. For a hedged play on Deere (DE), look at the Sep '13 $90.00 covered call for a net debit in the $86.65 area. That is also the break-even stock price for this trade. This covered call has a duration of 131 days, provides 6.12% downside protection and an assigned return rate of 3.87% for an annualized return rate of 10.77% (for comparison purposes only). A lower-cost hedged play for Deere (DE) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Deere (DE) Jan '14 $77.50 call and selling the Sep '13 $90.00 call for a total debit of $10.55. The trade has a lifespan of 131 days and would provide 4.60% downside protection and an assigned return rate of 18.48% for an annualized return rate of 51% (for comparison purposes only). Deere (DE) has a current annual dividend yield of 2.21%.
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As of Thursday, 05-09-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
03-02-2012 for DE @ $82.54.
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