Ahead of earnings, since we don't have any CAT in the LTP and you can sell the 2017 $80 puts for $8 and we haven't collected our usual $4,000 this month so let's sell 5 of those for $8.20 ($4,100) in the LTP.
That obligates you to buy 500 shares of CAT at $80 per share, so make sure you REALLY want to make this stock part of your portfolio if things turn sour. We love CAT and always buy them when they are down around here (and sell them at $100, because we don't love them that much!).
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