On CNBC's "Options Action," Carter Worth gave a bearish view on Caterpillar Inc. CAT. He said that the industrial stocks are very correlated and he showed several industrial names that broke its up-trend line. Only Caterpillar is trading above its trend line, and Worth believes that it is going to trade lower, along with the sector.
Market News and Data brought to you by Benzinga APIsMike Khouw is also bearish on the stock and he wants to buy the October 115/100 put spread for $3.66. The trade breaks even at $111.34 or 2.26 percent below the current stock price. If the stock closes 12.22 percent lower at the October expiration, the trade is going to reach its maximal profit of $11.34.
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