ITG Put Option Closing Trade Alert: CAT

CAT current price: $124.63

Last week I wrote about a long put trade, buying the July Week 3 130 Put at $5.20. The stock has broken down quite a bit from that point, and is now about $2.50 below my second target price, which was around $127. That’s a great short-term move, and it’s tempting to try to hold the trade a little longer and try to squeeze a few more dollars out of it, but I think the smart thing to do now is to go ahead and lock in a better-than-expected gain and move on.

  • Current July Week 3 130 Put Bid: $8.70. Original purchase price: $5.20.
    • Order type: Market sell to close.
    • Net gain: $3.50 per share
    • Net return: 67%

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