$CAT is a stock I have traded successfully over the years. Back in early 2009 analysts were pegging a $35 target to the name. These days its $120 or $130. Here is what I think.
I think CAT has seen its highs for the next 9 months+. I think the stock is headed lower and I will trade for this move via out of the money put options.
Right now I like the $97.50 December monthly puts. I think $CAT closes the year around the $95 level.
Into 2015 I think its under $90.