27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Caterpillar (NYSE:CAT).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with CAT, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 15 uncommon options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $360,450, and 9 are calls, for a total amount of $333,165.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $165.0 to $210.0 for Caterpillar over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 821.8 with a total volume of 1,260.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Caterpillar's big money trades within a strike price range of $165.0 to $210.0 over the last 30 days.
Caterpillar Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | PUT | SWEEP | BEARISH | 07/15/22 | $210.00 | $98.0K | 949 | 24 |
| CAT | PUT | TRADE | BULLISH | 11/18/22 | $170.00 | $73.8K | 4.2K | 50 |
| CAT | PUT | TRADE | BEARISH | 07/29/22 | $205.00 | $68.6K | 47 | 20 |
| CAT | PUT | SWEEP | BULLISH | 12/16/22 | $210.00 | $63.7K | 37 | 15 |
| CAT | CALL | TRADE | BEARISH | 10/21/22 | $165.00 | $49.7K | 55 | 60 |
Where Is Caterpillar Standing Right Now?
- With a volume of 654,795, the price of CAT is up 1.44% at $172.38.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 14 days.
What The Experts Say On Caterpillar:
- Morgan Stanley has decided to maintain their Underweight rating on Caterpillar, which currently sits at a price target of $161.
- Cowen & Co. has decided to maintain their Outperform rating on Caterpillar, which currently sits at a price target of $225.
- Deutsche Bank has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $227.
- JP Morgan has decided to maintain their Overweight rating on Caterpillar, which currently sits at a price target of $205.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Caterpillar, Benzinga Pro gives you real-time options trades alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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