Alert: Adjustment – CAT

Ticker: CAT
Price: $209.06
Date: 5/11/23 12:30 pm
Underlying: Caterpillar

Master Portfolio Contracts: 10


Some of us were assigned on our CAT 235 put. In the master account, we were assigned right at the open on all 10 contracts.

For some time, CAT was one of our best performers. Obviously, the last few months have not been good for the stock or our trading. We have been trying to work this trade back to a much lower loss or a break even. It is not cooperating but with the assignment, we have the opportunity to close it and move on to better trades.

TRADE ACTION (only if you were assigned shares):

For those that were assigned, sell back your stock. CAT was down about four points this morning but at the time I’m writing this alert it’s back up to 209-210.

Trade 1: Sell back your stock to the market.
Trade 2: Close the 16 Jun 230 put for a credit of around $21.45.


TRADE ACTION (if not assigned shares):
Trade 1: Close the 26 May 235/16 Jun 230 put diagonal for a debit of around 4.35

BTC the 26 May 235 put
STC the 16 Jun 230 put

We will then leave the 210 calendar spread alone as it has some profits and we will try to scalp additional profits from that leg.