Liz here, just astounded at what a weirdo Elvis was! I have been reading biographies while I was sick this week (THANKS, PIP), and apparently this wastoid only liked dating fourteen-year-old girls and their parents THOUGHT IT WAS FINE and let them have sleepovers all the time.

Also, it turns out that Elvis’s natural hair color was blond, and he dyed it black. You can totally see the difference between when he was younger and blond and not wearing eye makeup.


WHAT??

Anyway, it’s Friday, and Tom’s Ghostbusters team sent me over a Money Calendar trade on CAT, which he sees headed to 85% by September 16.

Pip is due on the 14th, so I likely won’t be tracking this play either way. IT’S UP TO YOU. You ain’t nothin’ but a hound dog, but you’ll probably be ok.

Go here now to get it…

The Ghostbusters Take On The Big Cat

We have highlighted a few trades in Trading Today over the past few weeks; one in Consumer Discretionary, one in Semiconductors (Tech), and one in Energy.

Working to stay diversified, we are going to highlight one from a stock classified as an Industrial; Caterpillar, Inc. (NYSE: CAT).

They are post earnings, so we don’t have to worry about that event causing any chaos in the management of any option trade.

They are on a bit of a pullback after their earnings were announced, but if you look at their chart you can see it had a nice price run up prior to the release of earnings that it isn’t surprising to see it sell off a bit – you could consider it profit raking if you want.

We will call it opportunity.

It is a 27-day pattern. It has a 90% accuracy. The average profit over this period of days the past 10-years is $4.41 or 4.41 points.

The price action written about earlier speaks about the run up into earnings and the pull back since, but the truth of the matter is the catalyst for the trade, whether it be on the stock, or the option is the Money Calendar pattern.

Let’s get to the visuals.



Option Scenario One: Call Debit Spread

The pricing on a Long Call is too pricey so we will highlight just the one option opportunity , which is the Call Debit Spread.

The way to get potential 100% ROI on this spread is to be able to open at a Net Debit or limit of $2.50, but that would really be working the spread hard and/or seeing if the stock price moves around to the point that $2.50 could be hit.

We aren’t going to quibble over a potential $2.70 cost which sets up a potential profit of $2.30 making for a prospective 85% ROI.

Here’s what to do:

NICKEL SLOTS: Tom

Action to Take:

Buy-to-Open the CAT September 16, 2022, $180 Call and on the same order ticket Sell-to-Open the CAT September 16, 2022, $185 Call for a Net Debit, or limit of $2.70.

Enter as a Good til Canceled (GTC) order.

Liz again! Have a great weekend and I’ll hit you back tomorrow with your MONEYSCORE for the week, as well as a Supremely Unhelpful Movie Review.

Don’t forget – I’ll also have a fresh crypto tip for you on Sunday from Nick Black. I am nothing if not industrious, when not reading about the scandalous private lives of the stars.

Hang loose!

Liz

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