Caterpillar Calls Again.
Last Friday we showed how one series of options traded on that day. Caterpillar was up $21.96 on that day. The Call options jumped $6.91 or 46.96 %. Only 13 contracts traded. Today Monday was not much different. Caterpillar jumped upwards on the day. The same series of Call options, the 665 Calls with the same striking price jumped again ( only on one contract ) and closed the day bid $37.95 - ask- $40.40. It helped that the DJIA also jumped up. Now here is it's five day chart. All this on no real news except the angle that it makes power generators. So Caterpillar is up over $50.00 in only two days. What to do? Buy these short term Puts that expire this Friday? Fighting strong stocks at the start of the week using near to expiring options is to big a risk to take with so many stocks now in nose bleeding territories. Now this. It's one month chart. Trading volumes are up. When stocks get hot like this something has to give. The question is when. I don't like fighti...
