Caterpillar (CAT) is down 2.3 percent to $91.81 and the biggest loser in the Dow early-Thursday after weak manufacturing data in China and Europe sparked a round of global equity market weakness. Cyclical names like Caterpillar are pacing the decline in the US and one player in the options market is bracing for furhter losses in the stock. A 7256-lot of Jan 85 puts is bought on CAT for $3.50 per contract to open. 8,520 now traded. Jan 87.5, Sep 90, Sep 92.5, and Oct 87.5 puts are also seeing interest. 22,000 puts and 5,220 calls now traded on the stock and 30-day ATM implied volatility is up 3.5 percent to 26.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.