Caterpillar has been trying to advance, but one investor remains
optionMONSTER's Depth Charge tracking program detected the purchase
of 11,945 January 85 puts for $1.23 and the sale of an equal number
of January 95 calls for $0.46. Volume exceeded open interest at
both strikes, indicating that new positions were initiated in each.
The investor paid $0.77 to open the trade and will make money if
the maker of earth-moving equipment declines over the next five
weeks. He or she probably owns shares in the company and is using
the options as a hedge in a
CAT is trading at $89.17, up 0.19 percent today and 9 percent in
the last month. The stock has been consolidating since the spring
and is now back near the top of its recent range, which could be
leading some chart watchers to expect that it will struggle to
advance in the near term.
Total option volume is almost twice the daily average in the stock
so far today.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.