Cramer on Deere, plus a trade idea

Deere & Co. (NYSE: DE) opened at $121.50. So far today the stock has hit a low of $121.32 and a high of $122.47. As of 10:25, DE is trading at $122.46, up $0.96 (0.8%).

DE has been climbing steadily over the past 10 months, hitting a new one-year high of $125.21 yesterday. Jim Cramer stated that he would aggressively buy DE right now based on some wrong assumptions in the market that have been holding the stock down. While investors had been expecting farm subsidy reforms to hurt the sector, those reforms don't look like they're coming any time soon. Recent technical indicators for DE have been bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $100 range. DE hasn't been below $100 since January and has shown support around $114 recently. This trade could be risky if Congress does end up enacting some farm reforms, but even if that happens, this position could be protected by the support the stock found just under $105 back in March, plus its 200-day moving average, which is currently at $100 and rising.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DE.