Review of CAT Trade

Just like to share with you the Caterpillar (CAT) trade which I highlighted previously.

Was watching this stock closely on Fri & entered Oct 67.5 Put for this trade when it broke previous day low. As you can see, the breakdown is also accompanied by high volume. Aided by the bearish tone of the overall market, it continued its slide down nicely to close to 62, which I had also earlier pointed out as a potential support area. And thereafter bounced off with a hammer-like candle, indicating a reversal to the upside. I exited soon after. For the rest of the day, the stock was just drifting between 62.5 & 63.

Although this stock has the potential for further move downwards, I had intended this trade to be intraday as I don't like the idea of holding it over the weekends