Option Millionaires

[uranium-pinto-beans]

CAT a nice post from yahoo boards --> Longs were terrified after buying the stock from the 25 dollars range and then they were unable to hold it in the 33 dollars range as selling pressure was too strong. If they had let the stock fall to the 28.50 range they would have lost billions of dollars. So now Joe calls his friend Ben (who works at JP Morgan) and threatens to take their money to another investment banker. So Ben goes and upgrades the stock while Joe dumps all his shares into the market. I have a short position at 28.90 and though this was a big run and really scared me I don't think there is substantial evidence for it. Options always reflect sentiment. Come on guys, after lowering the EPS to 1.25 excluding redundacy costs of .75. It means that CAT will just earn 50 cents after charges. What do you think is more probable? CAT running to 40 or 80x future P/E or CAT running to 25? Not to count that CAT will be paying 1.68 in dividends. Look at options, it's scary to see the amount of puts being bought! I don't short more because I can get margin calls if they move it up, but I wouldn't doubt in doing so if I had the money. This closing just tells you that this was a traders move, it's going to close lower than its highs before earnings.