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Option Update: Deere volatility elevated; shares weak on guidance

Deere (NYSE: DE) was trading at $84.99 in early trading, below its close of $90.19 Tuesday.

DE reported Q2 EPS of $1.74 versus consensus estimates of $1.75.

Goldman Sachs says: "Estimates and price target are under review."

DE May 90 straddle closed at $5.95, June at $11.10. DE June option implied volatility of 47 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Last updated: December 02, 2008: 03:05 PM

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