it would, in addition the Jan 75 puts EXPLODED in premium indicating that we are going to see 75 as I stated and sold that position short as you know.
My 75 puts are down on the new increase in premium which is exactly as I would expect. Dont be surprised to see CAT in the mid 80's within days and although the non-pro's on this board ridiculed me for suggesting we would see the 80's again that came last week at 89. However, for those of you who jumped into cat in the mid 90's its my belief that your going to take very serious pain as CAT and the ENTIRE market correct to dow 10,800ish cat 75ish making a higher low than the oct 4 67.54 low. I believe that cat will stop at the daily chart oct 6 73.60ish low. Only time will tell.
Many will be shaken out who are weak hands in the mid 90's as they panic when this selloff gets some traction
That's the problem with your logic murky, Cat is capable of leading the market, and you keep looking at it and judging it like other stocks in the market. You can't look at it like other stocks, and like others that have been on this board over the last 10 years you too will find this out. Until this good luck.
murky Iv made over $25K though on my long buy, and the one short, and up over $3K now on my long buy, the only one Im still long, 1000 shares again. I could ring the cash register this morning and play cat on one more dip I feel before it goes UP (not down). We sure see CAT with different eyes.
And I feel little risk with my two trades. Im concentrating on just one stock that the numbers will protect me if I "get stuck" in here, .. eventually it goes higher with these earnings.
I don't need to do all those complicated puts and covered puts and whatever.
Your 75 target on CAT to me is wishfull thinking. I get it, it doesn't matter to you if it hits, but seems like you don't really get CAT.
murky, I think you need to watch how CAT trades. Too many hoping and wishing it drops below $90 so they can load up on more shares. I used to have a link showing who was buying, but lost my old trading links, but someone was buying on the dip, not just me.
More proof, the market was down 269 pts and cat was at a low of 92.40, and the market dropped as low as 425 pts that day, and cat still only dropped into the lower 91s, about 1 pt more.
I think if you were smart you would load up on cat long and get on for the ride. I wish I had been home to buy another 500 shares, but at least Im long my original 1000 shares.
imo CAT does not want to drop below 90 again. It would take some really bad news at least two days in a row to drop it back there again.
I wished I had bought that day it dropped to 89.00, but I covered my short that day so was sidetracked, but I wanted to go long and so far thats been the only dip below 90.
Your negative scenerio just does not fit how CAT trades .. might fit some other stock, but not CAT.
Get on for the ride. Im still predicting it breaks out around year end. Right now its trading in a range still. traders must be having a hey day. they love stocks staying in the same range.
sorry murky, but my instincts say CAT is not going to follow your prediction. higher lows. failed rally at 97.95 and all that, but its trying to push higher.
Im finally on dry land for 24 hours.
Glad to see your post. I was about to get back in today. I was contemplating a Nov (18) or Dec 87.5 Put. At last minute I decided to sit on sideline until next week. The news in EU may take us down further. It's a dice roll.