Caterpillar (NYSE: CAT) was the focus of some heavy option trading on Wednesday, as more than 694,000 contracts changed hands. This volume was almost 14 times the equity's average single-day trading volume of 49,677 contracts. What's more, roughly 95% of the volume changed hands on the call side, according to data from WhatsTrading.com.
Digging into yesterday's action, we find that the stock saw heavy call liquidations ahead of July option expiration on Friday. The July 32 call saw its open interest decrease by 7,000 positions, while the July 30 and 31 calls had their open interest trimmed by approximately 4,000 contracts each. Moving out to the August series, the 25 call had open interest drop by 2,500 contracts.
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Jocelynn Drake, 513-589-3800
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