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: