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Caterpillar Has It's biggest One Day Drop Of The Year

Look at this five day chart.
At 9:45 a.m. yesterday Caterpillar was trading at $720.49 and then 3:51 Hours later it was trading at $676.95. That's an interday drop of $43.49 or a $12.40 per hour drop. What caused the drop? Yes it was reported that an individual in upper management sold seven million dollars worth of his stock however that shouldn't rattle the stock that much. Maybe the fellow needed the money to put an addition on his house. Did the stock sell off because the companies most recent earnings report, afterall after closer inspections wasn't all that great? I follow Caterpillar closely and panic sell off situations like this should be a message to management to better explain to it's shareholders the complexities of it's operating realities. The bottom line is that going forward, option premiums charged for "out-of-the-money" options will have to go up to better reflect the possibities of future events like this happening. One possible solution would be for Caterpillar to spin off different divisions while still maintaining partial control. The gold miner Barrick for example is now announcing a new public offering of a subsidiary that would hold it's North America gold assets. Caterpillar could do the same, perhaps spinning off it's Solar Turbine division now operating as a subsidiary. That could unlock hidden value. Here is what Ai says about the advantages of making such a move.
All I know is that the stock Caterpillar is becoming a less friendly company to trade options on. Other traders already know this. Very few option traders trade Caterpillar options. Now this on the following day at 10:35 in the morning.(Feb5th). Caterpillar is down again.
That makes for a drop of $69.00 since yesterday morning. See my Feb 2nd blog "Caterpillar Calls Again".

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