$CAT A Trade on Caterpillar

$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.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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