CNBC’s Options Action Trade for August 21th, 2017 – Caterpillar (CAT)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of the industrial sector. Carter Worth points out that most large cap industrial stocks tend to trade in step with each other. Big names in this sector has recently all broken major bullish trend lines such as CMI, IR, UNP and DE. Caterpillar (CAT) has been the only exception to not break the trendline, coupled with declining revenues and EPS, suggests a possible pullback. Expecting a move lower, Michael Khouw suggested buying a Oct 115/100 Put Spread for a $3.65 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action