Tiered Butterfly Trade in CAT

[Steven Place]

The stock is gapping up on earnings, I’m expecting a consolidation and a potential drift higher.

Here’s what I like– this is only 1/3rd of planned position:

Sell CAT Jun 105/100 bull put spread for 1.60
Sell CAT Jun 105/110 bear call spread for 1.95

If CAT Sees sees a move to 108 or 102 we will add to the trade.

Target is 20% return on risk.

[Steven Place]

We’ve hit our 20% target in CAT, time to exit out of the trade.

[Author]

Posts