Loading...
Loading...
, Mike Khouw spoke about options activity in
Caterpillar Inc.CAT. He said that the options volume was 4 times higher than the average daily options volume and he noticed that traders were making some bearish bets.
They were buying the July 75 puts for $0.40. For the trade to be profitable
Caterpillar Inc. has to drop to $74.60 or 3 percent lower by next Friday.
Khouw thinks that this is an inexpensive way to make a bearish bet as he believes that
Caterpillar Inc. could easily decline 3 percent in such a short period.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in