Sell Alert: November 2, 2012

| November 2, 2012

Sell Alert:  November 2, 2012

 

Trade Details

Sell Caterpillar (CAT) November 2012 $87.50 Calls for $1.05 or better

 

Why?

Well, we got the better than expected jobs report we were looking for… and then profit taking ensued.  It looks like investors are still a little gun shy after everything going on in the market the past couple weeks.  Missed earnings, Sandy, the election – plenty of reasons for volatility.

That’s okay.  We took a high probability shot at huge returns and it didn’t quite work out.  Still, we’re going to capture 33% gain or better with this trade.  There’s nothing wrong with that.

Let’s take our profits on CAT and sell the calls before time decay starts eating away at our gains.

 

Recent Activity

Caterpillar

 

Category: OTW Sell Alerts

About the Author ()

Marcus Haber is the co-editor of Options Trading Research and boasts well over a decade of real-life options experience. Learning from some of the biggest names in the business, Marcus has served as an Options Strategist for a number of firms and was also appointed to the Options Advsiory Board with Pershing, a branch of the Bank of New York.
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