So here is the first trade on a Caterpillar Put this morning.
Someone jumped in as Caterpillar was shooting up. Then this happened.
Caterpillar jumped some more and a block of ten Puts sold and then another one. Then this happened.
The poor fellow who got in at $6.00 paid to much. Then this happened.
Big volume surged in and these options went up. It all happened in 35 minutes. That's what Monday morning trading can sometimes be about. This blog ties into the story of my last blog. The danger now at this point is that Caterpillar could tick back up. Look at it's five day chart.
I wonder if the above traders are taking their profits. Here for interest sake is how these Caterpillar Puts closed the day.
Now at Tuesday look.
On Wednesday the party ended for the Put holders. It's hard to fight rising stocks.
The Puts closed at $350.00
Look at the jump it had in the first three hours of trading.
As sometimes mention, reversals happen in the middle of the week.
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