Theta is a nickel and growing fast with the little time left. Curious what made you think a long Put option was the right trade, especially one with little time value and rapidly increasing effects of time erosion?
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Help!! ITM long put in loss
- Thread starter nike_ray
- Start date
The previous uptrend is ending is an oportunity to sell.
Fibonacci 61.8% level to take profit at 54.5425
Fibonacci 38.2 pct is the stop loss at 60.10
CAT will touch its pivot point and reverse downwards, beginning a major downtrend. A move below 57.50 could set up a test of 53.25
MACD (Moving Averages convergence divergence) is peaking and is about to crosse the signal line downwards; Momentum and RSI (Relative Strength Index) are topping; stochastic is overbought.
The daily chart has a bearish consolidation right underneath a key long-term downtrend resistance line extending from the January high. Since recently hitting this trendline in mid-February, price has bumped up against it several more times without breaking the dynamic resistance imposed by the line.
The key upside event to watch for within the context of this current uptrend would be a breakout above the noted long-term resistance line. Bias still remains bearish and shorts close to 59.95 can be considered for the target of 55 and lower.
CONCLUSION: SELL AS MUCH CATERPILLAR AS YOU CAN (OR LOAD UP ON PUTS)
Analysis: Are you stupid enough to make investment decisions based on made up jibberish from an anonimous stranger on the internet???
Fibonacci 61.8% level to take profit at 54.5425
Fibonacci 38.2 pct is the stop loss at 60.10
CAT will touch its pivot point and reverse downwards, beginning a major downtrend. A move below 57.50 could set up a test of 53.25
MACD (Moving Averages convergence divergence) is peaking and is about to crosse the signal line downwards; Momentum and RSI (Relative Strength Index) are topping; stochastic is overbought.
The daily chart has a bearish consolidation right underneath a key long-term downtrend resistance line extending from the January high. Since recently hitting this trendline in mid-February, price has bumped up against it several more times without breaking the dynamic resistance imposed by the line.
The key upside event to watch for within the context of this current uptrend would be a breakout above the noted long-term resistance line. Bias still remains bearish and shorts close to 59.95 can be considered for the target of 55 and lower.
CONCLUSION: SELL AS MUCH CATERPILLAR AS YOU CAN (OR LOAD UP ON PUTS)
Analysis: Are you stupid enough to make investment decisions based on made up jibberish from an anonimous stranger on the internet???
Caterpillar: What Options Traders Are Saying
Published: Wednesday, 10 Mar 2010 | 7:47 AM ET Text Size By: Chris McKhann writer, OptionMonster
The big option trade of the day for Caterpillar appears to be a bet that the stock won't fall back to where it found support just a month ago.
Caterpillar [CAT 58.78 -0.40 (-0.68%) ] was up 0.46 percent, finishing the session at $59.18. It remains below the 52-week high of $64.42 set on Jan. 11 but recovered nicely from support down near $50, where the price was a month ago.
OptionMonster's real-time systems detected one block of 25,000 of the August $52.50 puts traded for $2.92. This was against open interest of just 2,608 contracts, so this was clearly a new opening position.
The puts appear to have been sold, indicating that the seller doesn't think shares will return to that level before the August expiration. If it does drop back to the $52.50 strike price, the trader will be required to buy 2.5 million shares of Caterpillar at that level.