Todays trade, CAT Primary Extension Fade

CAT has extended without compensating well over 50%. Stocks, with the exception of GS (go figure), do not typically cross the 100% threshold (if they did, the rules would skew, for you can not decline greater than 100%).

This brings up a high probability on CAT. The Novemeber 75.00 Put will be our vehicle of trade, unless you take the straight share option (better, but more capital required). This trade is based on a 1 contract, or 100 share lot size.

Capital required for option play: 38,126
Estimated profit range: 450.00 to 13,000.00
Estimated % profit on utilized capital: 25-30%
Stop Loss: 10K
Chance of successful completion with profit: Extremely high



Entries and quantities are on the right side margin of the image (click to enlarge), here they are in case you are viewing from a mobile device.

Entry QTY
47.00 1
49.09 1
50.90 1
52.48 1
53.86 1
55.05 1
56.10 1
57.00 1
57.79 1
58.47 1
59.07 1
59.59 1
60.04 1
60.43 1
60.77 1
61.07 1
61.33 1
61.55 1
61.75 1
61.92 1

62.25 will be our stop