Stock / Symbol: Caterpillar / CAT
Price at trade post: $116.10
Option Strategy: [private_monthly]calendar put spread[/private_monthly]
Reasoning:[private_monthly] We're thinking that by March expiration, CAT won't move too much from it's current price, but with a slight downward bias. Therefore, we're doing a calendar put spread. [/private_monthly]
Trade Details : [private_monthly]
BTO 2 CAT Apr12 115 puts
STO -2 CAT Mar12 115 puts
for a net debit of $2.20 per contract (day order, limit order)
[/private_monthly]
Requirements
Cost/Proceeds: $440
Option Requirement: $0
Total Requirements: $440
Estimated Commission: $12.95
Max Risk: $440
Profit Range: $111.65 – 118.50 (Mar 16)
Max Profit: $270 or 61% @ $115 by Mar 16
Suggested Downside Stop: @ $110
Suggested Upside Stop: @ $120
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