What's new is old again

Yes we reversed that old saying, it usually goes “What’s old is new again” for us today it’s opposite. How so? Well we started trimming our position in CAT today. We still have a few plays on but quite a bit less exposure. It was 2 weeks ago today that we entered after having watched it on and off for a few months.

CAT has risen exactly 12% in these past 2 weeks as a stock.
A week ago I shared my goal of turning the initial investment of $11,632.00 into 30K then 40K then I realized 50K was achievable thus creating “The $50,000.00 Challenge” That occurred and gave us an overall gain of more than 330% in these past 2 weeks
Market Makers have adjusted prices, and CAT will need a bit more uummph to advance from here. Strikes that were priced at 350.00 per contract are now at 850.00 per contract. ( remember yesterday how I said to stare at your Options Chain 30 seconds a day?? ) Yes the stock price has risen, but only by 12%, 350.00 to 850.00 is more than 12%……It will take a bigger push to get the type of gains we’ve already made. I’ve said it a gazillion times before “In Options, pricing is everything” ( hence why we always buy at the MID and just pass if we can’t ) We may re-enter, and again we are still holding a few covered positions, but for right now this looks to be it until a bigger breakout ensues

NVDA Today China announced that they would not be buying any NVDA chips, that didn’t sit well for the stock. News announcements such as this typically have a 3 day shelf life, we’ll be watching to see how this plays out.

Go get outside this weekend, shut the electronics off, enjoy what Nature has to offer. Go walk in the woods and connect with the Earth. Be back on Sunday night with the Weekly review.

The Options Coach