CAT – Caterpillar Inc (Last:118.98)

Subscribers used a 115.70 target posted in the chat room Tuesday morning to get long eight cents from the bottom of CAT’s hellish $13 plunge. A $7 rally ensued, affording everyone who bought the stock to lock in a profit and hold some shares for a risk-free swing at the fences. The target looked so appealing (see inset) that an hour before it was hit, your editor was able to assure traders that it “absolutely could not miss.” Just so.  At the same time, a bear option spread that we’d given up for dead came roaring back as stocks plunged. The DIA Oct 26 245/242.50 vertical put spread doubled in price from the 0.34 (or less) subscribers had paid, providing an opportunity to take partial profits, sit back and enjoy the stock market’s histrionics for the remainder of the week, come what may. Want to join in the fun? Click here for a free two-week trial and head for the chat room, where great traders from around the world swap actionable ideas 24/7.