27% profit every 20 days?
This is what Nic Chahine averages with his option 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.
A whale with a lot of money to spend has taken a noticeably bearish stance on Caterpillar.
Looking at options history for Caterpillar (NYSE:CAT) we detected 10 strange trades.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
If we consider the specifics of each trade, it is accurate to state that 20% of the investors opened trades with bullish expectations and 80% with bearish.
From the overall spotted trades, 4 are puts, for a total amount of $160,002 and 6, calls, for a total amount of $265,985.
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 $185.0 to $200.0 for Caterpillar over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Caterpillar's options for a given strike price.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Caterpillar's whale activity within a strike price range from $185.0 to $200.0 in 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 | CALL | TRADE | BEARISH | 01/20/23 | $200.00 | $50.5K | 3.4K | 250 |
| CAT | CALL | TRADE | BEARISH | 01/20/23 | $200.00 | $50.5K | 3.4K | 50 |
| CAT | CALL | TRADE | BEARISH | 01/20/23 | $200.00 | $50.0K | 3.4K | 300 |
| CAT | CALL | TRADE | BEARISH | 01/20/23 | $200.00 | $48.5K | 3.4K | 99 |
| CAT | PUT | SWEEP | BEARISH | 12/16/22 | $195.00 | $48.2K | 68 | 25 |
Where Is Caterpillar Standing Right Now?
- With a volume of 497,941, the price of CAT is up 0.94% at $185.37.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 83 days.
What The Experts Say On Caterpillar:
- JP Morgan has decided to maintain their Overweight rating on Caterpillar, which currently sits at a price target of $205.
- Bernstein downgraded its action to Market Perform with a price target of $195
- Wells Fargo has decided to maintain their Equal-Weight rating on Caterpillar, which currently sits at a price target of $205.
- Deutsche Bank has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $227.
- UBS has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $225.
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% profit every 20 days?
This is what Nic Chahine averages with his option 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.