Stock / Symbol: Caterpillar / CAT
Option Strategy: [private_monthly]calendar put spread[/private_monthly]
Trade entry date: Feb 29
Price at trade entry: $115.92
Price at this post: $105.50
Current Position : [private_monthly]
Long 2 CAT Apr12 115 puts
Short -2 CAT Mar12 115 puts
at a net cost of $2.20 per contract
+
Long 2 CAT Apr12 110 puts
Short -2 CAT Mar12 110 puts
at a net cost of $2.07 per contract
[/private_monthly]
Adjustment: With CAT now trading under 110,[private_monthly] we're going to close out our 115 put calendar. If you happen to be in the 115 call calendar, close it as well.[/private_monthly]
Trade Details : [private_monthly]
STC 2 CAT Apr12 115 puts
BT5 -2 CAT Mar12 115 puts
for a net credit of $1.20 per contract (or best price)
if you're in the 115 call calendar, close out at the best price you can get.
[/private_monthly]
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