Call Spread on DE on 5/10/2021

Deere & Company (DE) manufactures and distributes various farm equipment worldwide. 

The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services.

The Agriculture and Turf segment provides various agriculture and turf equipment, and related service parts, including large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; tillage, seeding, and application equipment comprising sprayers, nutrient management, and soil preparation machinery; self-propelled forage harvesters and attachments, balers, and mowers; riding lawn equipment, golf course equipment, utility vehicles, and commercial mowing equipment along with associated implements; integrated agricultural solutions and precision technologies; and other outdoor power products.

The Construction and Forestry segment offers a range of machines and service parts used in construction, earthmoving, road building, material handling, and timber harvesting, including backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; milling machines; recyclers; slipform pavers; surface miners; asphalt pavers; compactors; tandem and static rollers; mobile crushers and screens; mobile and stationary asphalt plants; log skidders; feller bunchers; log loaders; log forwarders; and log harvesters and related logging attachments.

The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. Shares have broken above a reistance level. The company is expected to report its results on May 21st. The company expects fiscal 2021 net income of $4.60 billion to $5.0 billion, or earnings of approximately $14.55 to $15.82 per share. The company's previous guidance was net income of $3.60 billion to $4.0 billion and the current consensus earnings estimate is $13.14 per share for the year ending October 31, 2021.

We will be trading May 28th call options.

Last Trade: $394.22

Trading Range: $117.85 to $396.90

Trade Buy 1 May $392.50 Call at $13.50 Sell 1 May $405.00 Call at $8.00 For a net debit of $5.50 Profit/Loss Analysis Breakeven at $398.00 Maximum profit is $700.00 at strike of $405.00 Maximum loss is ($550.00) at strike of $392.00 Closing Summary Sold 1 May $392.50 Call at $0.00 Bought 1 May $405.00 Call at $0.00

Position closed on 5/28/2021 at price of $0.00 with a -100.00% loss in 18 days.

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