On CNBC's "Options Action," Carter Worth compared the move in the U.S. dollar with moves in the commodity sector and in Deere & Company DE. The U.S. dollar is in a free fall, while commodities and Deere are trading sharply higher, he said. The U.S. dollar has dropped to levels last seen in 2017-2018, and Worth expects it to bounce off the lows and move back to the trend line, which is 3% to 4% above the current price level. Worth believes a potential move higher in the U.S. dollar would hurt commodities and Deere, and he wants to sell the stock and commodities.
Mike Khouw suggested a bearish options trade in Deere. He wants to buy the March $290 put for $15 and sell the February $280 put for $7.75. The trade would cost him $7.25 which would set the break-even at $282.75, or about 3.8% below the current stock price.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.