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Caterpillar Jumped $35.02 On The Week

Here is it's five day, one month chart and "year-to-date" chart. Anyone trying to fight the downside on it lost their battle. Call holders where richly rewarded.
It's next quarterly earnings report is due out Oct 29th. The last blog I did on Caterpillar was back on August 28th which ran with this caption.
This stock really didn't do much in the two weeks after that. So where it is now is kind of a surprise. Why aren't the tariff effects now hurting it? Haven't their raw material costs gone up? Now this, the interest in their one month out Puts. That buys you a lot of time.
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Nobody is playing the "one-month-out" Puts. What about the one week out Puts? Here is where thing get a little bit more interesting.
Caterpillar was up again $35.02 on the week. Let's finish off this deep delve by looking at the volumes on this upcoming weeks Calls. The interest in them is also very low.
What do I think? I think if Caterpillar takes a pause tomorrow on the opening and drops $4.00 or $5.00 the 450 Puts could go from $1.25 to $2.00. This isn't something I would have said during last week's "mid-week" trading session. Option traders were smart for not looking for any downside action last week. Caterpillar tends to be void of chatter. Let's see what happens next.

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