Deere & Company - Exit Before Earnings?

"Armchair Trader" Members Up 45% Potential Profit Already On This Options Trade!

by Ian Harvey

August 15, 2018




Deere & Company (NYSE:DE)

Deere & Company shares have sunk – but will it last after earnings on Friday morning. This put options trade was recommended to ““Armchair Trader” Members” of Stock Options Made Easy on Monday morning; now up 45% potential profits in two days; more is likely; is it time to exit?

Or should you hold until after the earnings report due out Friday, before the market opens to obtain the 100% originally aimed for?



The Trade……

…….from……“Armchair Trader Series” Recommendations - Week Beginning Monday, August 13, 2018.

The Details……..

Deere & Company (NYSE:DE), engaged in equipment operations, will report earnings on Friday, August 17, 2018, before the market opens. Equities research analysts forecast that Deere & Company (NYSE:DE) will report $2.76 earnings per share for the current fiscal quarter. Five analysts have issued estimates for Deere & Company’s earnings, with the lowest EPS estimate coming in at $2.61 and the highest estimate coming in at $2.84. Deere & Company reported earnings per share of $1.97 in the same quarter last year.

Also, Wall Street brokerages predict that Deere & Company will announce sales of $9.20 billion for the current quarter. Five analysts have provided estimates for Deere & Company’s earnings, with estimates ranging from $9.19 billion to $9.21 billion. Deere & Company posted sales of $6.83 billion in the same quarter last year.

In the past three months, Deere’s 100-day moving average price has fallen from $157.80 to $146.60, which indicates a downward trend in the stock.

Deere stock has fallen 9.2% year-to-date.

UBS analysts say escalation of trade wars could impact earnings growth and send stock prices lower.

UBS analysts said the stocks in their coverage universe most impacted by trade tensions have underperformed the S&P 500 by about 4.5 percent since trade frictions began to intensify in mid-Marchcontinue reading…..

The Trade……..

** OPTION TRADE: Buy the DE SEPT 21 2018 135.000 PUT at approximately $4.40. Place a pre-determined sell at $8.80.

Also include a protective stop loss of $1.75.

The Result So Far………

Shares of Deere & Company sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release. But unfortunately, Deere's dip is part of a much larger decline over the last six months.

The reason to be wary her is that many analysts predict that Deere's top and bottom lines are projected to soar this quarter.

Past Views and Expectations……

Deere did report a GAAP net loss of $535.1 million in its first fiscal quarter of 2018, which the company said was mainly due to the massive U.S. tax reforms. And the agricultural and construction equipment powerhouse has been negatively impacted by the ongoing trade disputes between the U.S. and China, as investors worry the company's costs could climb.

However, the firm reported net income of $1.21 billion, with revenues up 29%, in its second quarter.

More recently, the company's upbeat outlook is based on higher housing starts in the U.S. and an improved oil and gas sector. Deere also noted that it expects its June 2017 acquisition of the German-headquartered manufacturer of road construction equipment, Wirtgen Group, to have a positive impact on its sales. Furthermore, the economic environment for the construction, forestry, and road building industries look strong.


But DE stock is up just 7% over the last year, which lags the S&P's 15% climb. Much worse still, shares of Deere have plummeted by more than 13% since the start of the year.

The Profits

So, for “Armchair Trader” members who managed to execute this trade recommended by Stock Options Made Easy; and wish to take potential profits now, 45%, at last look, was available.

Entering the option trade at a cost of $4.40 or less; and now as high as $6.40; one options contract would provide a profit of $200; or 45% Potential Profit.


This trade has been very profitable in a short time and it is very possible that further profit can be made from this put options trade, but as they say, “a bird-in-the-hand is better than two-in-the-bush”.

There are several choices to be decided now……

  • ….. take the profits now,
  • …..take half the profits, and then take rest of profits before the earnings report,
  • …..take half the profits, and then take rest of profits after the earnings report, (which is the risk as the company may surprise!),
  • …..continue holding until after the earnings report, or
  • …..wait until expiry.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"When To Exit A Trade Based On Earnings?"

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....


"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program" here....

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

Back to Stock Options Made Easy Home Page from Deere & Company - Exit Before Earnings?