March 26, 2013

Caterpillar (CAT)

Bias: Bearish
Price Target: $83

We are bearish on CAT and believe that the possibility of further selling acceleration is favorable. We want to purchase a Put diagonal to take advantage of the potential move lower.


SELL To OPEN 2 CAT 85 Apr-20 Puts now trading at $1.04
BUY To OPEN 2 CAT 87.5 May-18 Puts now trading at $3.35


CAT is now trading at $86.95
This spread is now trading at $2.31
The Total Debit of this spread is $4.62


Day Order Only

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