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: $113.85
Current Position : [private_monthly]
Long 2 CAT Apr12 110 puts
Short -2 CAT Mar12 110 puts
at a net cost of $2.07 per contract
[/private_monthly]
Reasoning:[private_monthly] Well, this was a frustrating trade in that had we left the 115 calendar on, we'd have had a great trade on our hands. We're closing out the 110 put calendar today for a slight loss. We'll look to re-enter a position in CAT next week.[/private_monthly]
Closing Trade Details : [private_monthly]
STC 2 CAT Apr12 110 puts
BTC -2 CAT Mar12 110 puts
for a net credit of $1.88 per contract (limit order, day order)
[/private_monthly]
Max Risk: $856
Profit Range: $106.75 – 113.40 (Mar 16)
Max Profit: $260 or 30% @ $110 by Mar 16
Profit / Loss upon fill: ($251) pre-commission
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