Trade Adjustment: CAT

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: $112.59

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
[/private_monthly]

Adjustment: With it looking like CAT will be trading closer to 110 than 115 by Mar12 exp,[private_monthly] we're giong to add a 110 put calendar to the position. This works whether you're currently in the 115 put cal or 115 call cal.[/private_monthly]

Trade Details : [private_monthly]

BTO 2 CAT Apr12 110 puts
STO -2 CAT Mar12 110 puts
for a net debit of $2.08 per contract (day order, limit order)

Requirements
Cost/Proceeds: $416
Option Requirement: $0
Total Requirements: $416
Estimated Commission: $12.95
[/private_monthly]
Max Risk: $856
Profit Range: $108.70 – 116.50 (Mar 16)
Max Profit: $170 or 19.8% bet $100 - $115 by Mar 16
Suggested Downside Stop: @ $108
Suggested Upside Stop: @ $117.50