Here is a trade I am looking to open this morning based upon a chart that I know very well.
When $CAT was over $100 recently I traded for a move under $95, it went to $88 instead. A very nice over shoot. I didn't think the recovery rally would get $CAT passed $95, and sure enough it recently failed to break $95. I now think the stock is heading back under $90. I have two trades I am looking to open based on this:
This weeks $94 puts at $.83
January Monthly $91 puts at $.70