October 24, 2013 Trade Alert - Terry’s Trades Portfolio - LIMIT ORDERS

Earlier we placed these same trades in the PEA Play portfolio: Boeing (BA) had a big up day (+5%) after reporting earnings while Caterpillar (CAT) fell 6% after reporting.  We will place calendar spreads on both companies, predicting that over the next 8 days the stock will continue in the same direction at a much slower pace.  We will use the Nov4-13 series rather than the Nov-13 series for the long side to give us a little more time:

BTO 10 BA Nov4-13 130 calls (BA131122C130)
STO 10 BA Nov2-13 130 calls (BA131108C130) for a debit limit of $.78  (buying a calendar)

BTO 12 CAT Nov4-13 82 puts (CAT131122P82)
STO 12 CAT Nov2-13 82 puts (CAT131108P82) for a debit limit of $.47  (buying a calendar)
 
Happy trading.
 
Terry