My Trade Details:
- CAT Jan 27 2023 250 Call near $5.20
- Stop: Close below $237
- Target 1: $258
- Target 2: $268
CAT – Your Bullseye Pick Of The Week - Bullseye Pick of the Week
The options were up over 200%
Here was my reasoning:
This week, I continue to remain bullish on the markets overall. I don’t really see a lot out there that should derail a “mini-rally” for the markets.
When I look at the most bullish stocks out there right now, they aren’t my beloved tech stocks – they are “boring” stocks like industrials, commodities, and would you believe it… even homebuilders!
So that is where I am headed this week, back to a leader in the industrials, and a stock I have had a lot of success with, in the past – CAT
There is a lot to like on the price chart for CAT right now. It is a strong earnings winner, and it continues to grind higher after a one-month+ consolidation.
If I am wrong on this trade, I want to set a stop if CAT closes under $237, which is near the recent support level and 13-day moving average.
If I am right, then I think we will see a continued run higher over the next couple of weeks. I think we could see prices near $260 and then $270 in an optimistic scenario.
That’s what the stock did: