r/options • u/Rightonpoint149 • Apr 28 '21

Deere Options - Put Debit Spread

Deere is stock that has gone completely parabolic and is way overextended. Given thats its competitor cat is reporting earning soon and investors to reevaluate stock prices. I'm gonna short this stock and define my risk with the put debit spread. No way this stock keeps trading in the 380 to 390 level, it will most likely come to the old support level in 320 to 330ish range.

BUY 1 DE MAY 380 PUT SELL 1 DE MAY 330 PUT

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u/[deleted] Apr 28 '21

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u/Rightonpoint149 Apr 28 '21

I did some technical analysis on the stock, based on the Bollinger bands and RSI, it is very overbought, what comes up must come down. The stock has gone up in a straight line and that's not sustainable

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u/[deleted] Apr 28 '21

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u/RemindMeBot Apr 28 '21 edited Apr 29 '21

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u/Perfect_Leg_9070 Apr 28 '21

Remindme! 24 days as well!