Dan Passerelli High Probability Put Spread in Caterpillar (CAT)

In today’s trade recap, Dan Passarelli highlights an alert from his daily Market Taker coaching session. Right now, CAT is holding support at right about $104. CAT also has weekly support on the psychological price level at $100 which coincides with the 200 day simple moving average. Additionally, implied volatility in the name is at elevated levels relative to historical. These factors combine to present a very high probability set up for put credit spreads. To setup this trade, we would sell the October 97.5/100 bull put spread for $0.20 cents or better.