$CAT has been grinding in an almost 4 year channel. Recently the stock hit the upper resistance line and started to pull back. For $CAT each time it's hit that line, the stock has fallen significantly.
I highlighted this in a post last week, and also this weekend for gold members of the site and chat room. I was fairly certain this would happen. This week $CAT fell some $10 to under $90. The puts turned into massive 700%+ gains.
My December 4th Post on $CAT and the puts highlighted in that post $97.50 DEC monthly puts:
The $95 puts I highlighted this weekend at $.17 hit $4.75
The $5 pull back I saw coming this week ended up going more than double that. That doesn't always happen, but it's nice not just to be right about a trade, but to see if go much further than expected. Longer term $CAT could be headed back to test the bottom of the channel at $76. I will then be a buyer of the calls for a move higher. Sometimes its that simple, if you know what your looking for.
