Earthquake Play in CAT

The world is shaking apart and the Japanese may need some heavy equipment to rebuild.  CAT has strong demand anyway, so this could be an opportunity to ride a price spike.  A 1 Standard Deviation move would put CAT at just over 90 by April expiration.  This could be a good opportunity to get in.  CAT would have to pull back by 10% to make this move.  We managed to get in for .47 so this has already had a good move.  Sizing is important if you decide to chase it.

SELL -1 VERTICAL CAT 100 APR 11 90/85 PUT @.39

Stock-Analyze---CAT-2011-03-14

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