Put Options on CAT on 6/27/2016

Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.

The company’s Construction Industries segment offers backhoe, small wheel, skid steer, multi-terrain, compact track, medium and compact wheel, and track-type loaders; mini, wheel, and track excavators; track-type tractors; and select work tools, motor graders, telehandlers, soil compactors, and pipelayers, as well as its related parts for the heavy and general construction, rental, mining and quarry, and aggregates markets.

Its Resource Industries segment provides electric rope and hydraulic shovels; draglines; drills; highwall and longwall miners; hard rock vehicles; articulated, large mining, and off-highway trucks; large wheel loaders; wheel tractor scrapers; wheel dozers; machinery components; hard rock continuous mining systems; electronics and control systems; and select work tools for use in mining and quarry applications.

The company’s Energy & Transportation segment offers reciprocating engines, generator sets, marine propulsion systems, gas turbines and turbine-related services, diesel-electric locomotives, and other rail-related products and services.

Its Financial Products segment provides retail and wholesale financing for Caterpillar equipment, machinery, and engines; offers property, casualty, life, accident, and health insurance; insurance brokerage services; and purchases short-term trade receivables.

Shares of CAT have formed a "double top" and lower share prices are expected for this stock. Note that the strong dollar hurts exporters such as CAT.

We will be trading July 15th Put Options.

52-Weeks Trading Range:  $56.36 - $86.74

Last Trade: $73.03

Trade Buy 1 July $73.50 Put at $2.00 For a net debit of $2.00 Profit/Loss Analysis Maximum profit is unbounded Maximum loss is ($200.00) at strike of $74.00 Closing Summary Sold 1 July $73.50 Put at $0.00

Position closed on 7/18/2016 at price of $0.00 with a -100.00% loss in 20 days.

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