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Deere (DE) - Get Deere & Company Report reported better-than-expected quarterly results before the bell on Wednesday, and the stock jumped as a result. Although the share price jumped above resistance, the signals are bullish. The chart shows why.

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The volume spike on Nov. 25 was the second largest in the past six months, and the only one that was larger occurred during the broad market decline in late August. Just before Deere reported results Wednesday, a bullish engulfing pattern appeared on the chart. This is a strong technical signal. After the stock's price gapped higher on the earnings news, another bullish signal appeared: a dragonfly doji. All of this portends continued upward movement in the price of the stock.

With this in mind, investors may want to consider selling the December 80 put option on Deere. It closed Nov. 25 with a bid of 1.84, and can be sold for about $175 including trading costs. This put option was at the money, so this trade presents an excellent opportunity for a short-term profit.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

Besides blogging at, Michael Thomsett also blogs at theCBOE Options Huband several other sites. He is author of 11 options books and has been trading options for 35 years.  Thomsett Publishing Website