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Monday, January 26, 2009

Update to CAT Earnings 1/26/09

Just as I thought CAT numbers came in weak, but who would have guessed that would revise 2009 numbers like they did. Cutting 20,000 jobs is bad for economy overall but good for CAT. Today as planned as the stock traded belwo $32 a share, I was out selling LEAP 11 PUTS for the $45 (VKTMI) and fetched $1890 a contract (cost basis come JAN 2011 assuming CAT is lower than $45 (which I don't think it will be) is $26.10). If CAT continues to sell off I will sell more. If CAT gets to the $25 range I will sell some more 2011 PUTS. I hope we've seen the worst for CAT but who knows...


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