It is Monday morning and as I write this, I, like some other investors, are waiting the news on CAT. The company isn’t going to go bankrupt or go away however I think there is some room for drift and drop. My own take on the subject is well known, I have some covered calls and even more puts on the stock. There may even be more gloom and doom economic news that will send the stock down further. As a person who is shorting the stock, I wouldn’t mind if the stock dropped but as a professional I wish that the market would turn around. I wish that businesses would hire more people and do it faster. All I need is a magic lamp and I will be set.
Without the benefit of magical help from a jinn (you know them as genie in English stories), the way for me to cautiously proceed is through covered calls and puts. I almost wrote that last sentence as “putts” and that particular golfing term isn’t too far off because of the swings in the market. The net result after a few weeks is that there has been some movement, just generally not alot.
In the case of CAT, I think there will be a move and then a brief rally and then, barring President Obama and Congress actually getting something passed immediately that will benefit CAT, the stock will start drifting down. Everything else has been follownig suit so I figure, why not CAT? I have plenty of time (as of this post) to close positions on options and move on if I want to.
There may also be some bad news about something, anything on Monday and that could drive the stock down further. Be it an earthquake somewhere (though you’d think they would need bulldozers to dig things out) or a tidal wave or just more bad economic data from anybody. I hate to wish things from dropping down or up but it is human nature to want things to go your way and you certainly don’t need a genie to do it – though if I had one, I wouldn’t be upset either.
In any case, have a great Monday everybody!
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Kim Isaac Greenblatt
Monday Economic News and CAT investing
Tags: Business, CAT, economic news
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