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September 16, 2009 7:48 EDT Related Symbols: CAT
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OptionsNews
An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.
An investor employed a put one-by-two to express moderate bearishness despite a 6% rally in Caterpillar.
Moderate Bearishness in Caterpillar Despite Rally
An investor employed a put one-by-two to express moderate bearishness despite a 6% rally in Caterpillar.
September 16, 2009
On today’s Options News, Carrie Long and the www.ONN.tv team look at Wednesday’s pre-market price action in the broader market, highlighted by a larger-than-expected climb in the Consumer Price Index report. The CPI climbed 0.4% compared to expectations of 0.3%, showing inflation will be contained. On Tuesday, the Dow rallied 65 points to 9,692 and the S&P 500 gained three points to 1,053. The CBOE SPX Volatility Index (VIX) dropped 0.5 point to 23.3, but economic news going into expiration could catalyze implied volatility movement.
Early Market Indications
Ahead of the U.S. market open, S&P 500 futures are up four points to 1,050, and international markets are also showing signs of optimism, with Hong Kong up nearly 3% and Europe up 1.5%.
Put One-by-Two in Caterpillar
At least one investor expressed moderate bearishness in Caterpillar (CAT) on Tuesday when the stock rallied 6% to $51.76. The investor bought the Jan. 2010 43-33 put one-by-two in a play that could be gearing up for the company’s earnings on Oct. 20. The company reported way-better-than-expected earnings in July, but analysts expect a significant decline in earnings per share this quarter.
This week’s ONN.tv Wednesday Webinar explores straddling puts and call and how you can bank on a big move. Be sure to sign up by clicking on the webinars tab at www.onn.tv to reserve your spot. Sign up now – spots fill up quickly!
For more breaking news and investment pointers on the options market, stay tuned in to www.ONN.tv.
