Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Caterpillar Inc. (CAT) Call Buyers Bet Stock Extends Gains Next Week

Page 1 of 2

Caterpillar Inc. (NYSE:CAT) – Trading traffic in weekly call options on the world’s largest maker of machinery indicates some traders are betting Caterpillar Inc. (NYSE:CAT)’s shares, up 3.75% at $87.43 as of 12:50 p.m. ET on Friday, extend gains next week. Bullish bets in weekly contracts expiring next Friday are heaviest at the May 10 ’13 $87.5 and $90 strikes. Upwards of 4,000 calls changed hands at the $87.5 strike, with the bulk of the volume purchased in the early going at an average premium of $0.51 apiece. The price tag on the $87.5 weekly calls has roughly doubled to $1.03 as of the time of this writing, with the stock sitting at the highs of the session. Traders long the calls profit at expiration next week as long as Caterpillar Inc. (NYSE:CAT)’s shares exceed the average breakeven price of $88.01. More than 2,000 of the $90 strike weekly calls have traded as well. It looks like most of the contracts were picked up this morning at an average premium of $0.13 each. Premium on the $90 calls expiring next Friday has also roughly doubled since this morning, with the last traded price on the contracts up at $0.25 apiece. Overall volume in Caterpillar Inc. (NYSE:CAT) options is above 51,000 contracts, topping the stock’s average daily volume of around 46,700 contracts, with the call/put ratio up above 2.0.

Caterpillar Inc. (NYSE:CAT)

QLogic Corporation (NASDAQ:QLGC) – Shares in QLogic Corporation (NASDAQ:QLGC) are bucking the trend today, sliding more than 7.0% to $9.71 during the first half of the trading session even as the S&P 500 Index and the Dow Jones Industrial Average rally to fresh highs. QLogic Corporation (NASDAQ:QLGC) had been participating in the run up in U.S. stocks earlier this year, rising nearly 25% from the start of 2013 to as high as $12.35 in mid-March. During the seven weeks since then, however, shares in the name have dropped more than 20% to the current level. QLogic Corporation (NASDAQ:QLGC)’s shares slipped to a fifteen-week low today after a number of analysts lowered target prices on the stock on the heels of QLogic Corporation (NASDAQ:QLGC)’s fourth-quarter earnings release on Thursday after the close. Yet, some options traders appear to be positioning for the price of the underlying to rebound during the next five months. It looks like more than 2,000 calls changed hands at the Oct $12.5 strike versus open interest of 226 contracts. Time and sales data suggests most of the $12.5 strike calls were purchased today for an average premium of $0.27 each. Call buyers stand ready to profit at October expiration should shares in QLogic Corporation (NASDAQ:QLGC) surge 32% to exceed the average breakeven price of $12.77.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!