By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Deere (DE) has been growing international sales and its stock has been running rapidly.
OptionMonster's tracking systems detected heavy trading Tuesday in the February 100 calls for 56 cents to 60 cents and the February 105 calls for 19 cents to 23 cents. In some cases, traders bought one and sold the other to leverage a sprint higher in the next two weeks.
Calls lock in the price where investors can buy shares, so they can generate significant leverage in the event of a rally. It would take quite a move to reach those $100 and $105 strike prices, but Tuesday's traders are willing to take that risk.The stock climbed 1.13% to close the session at $95.05, another 52-week high. Deere, which is the largest supplier of agricultural equipment, has been building factories and research centers in emerging markets and gaining revenues from international sales. JP Morgan upgraded the stock early this month and raised its target to $90. Calls outnumbered puts in the name by almost 23,000 to 9,000 Tuesday, a clear reflection of the bullish sentiment. Total option volume was five times greater than average. Najarian owns DE calls.
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