Collar details for Deere

Received a few questions on the option collar that I put on for $DE so here is a detailed breakdown:

I am long the stock from the earlier bounce. I have put on a Collar now for the November 23 weekly expiration and will hold through earnings. Here are the pieces:

  • short the November 23 weekly 87.5 Call (covered)
  • long the November 23 weekly 85 Put
  • short the November 23 weekly 80 Put
  • The trade above creates a 85/80 Put spread for some downside protection. It also caps the gain at the 87.5 Call strike
  • This was done for a $.10 debit

Here is the chart I was trading from this morning:

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