Making a 'CAT Call'

The market is perking up here as we head toward the end of the week. Strong ADP numbers this morning, an end to the rain in Houston (but not the tragedy), and silence from North Korea seem to have buyers out in force today. I'm seeing strength in smaller and mid-size names that was lacking over the past week or so.

All of this makes me a bit concerned about the S&P 500 SPDR (SPY) put position. Though it has been acting as a hedge as I've trimmed positions it has been having more of a neutralizing effect. I'm making a move here with a long Oct. 20 $115 call on Caterpillar (CAT) at $4.50, which has a delta near 60, so the approximate of being long 60 shares on any upside move....149 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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