Time to start fading Caterpillar stock, says trader Tony Zhang

Caterpillar’s stock has slipped nearly 30% from its summer high, breaking below the psychologically important $800 level, after a run fueled by a data center power boom and a record backlog. A trader highlighted fresh bearish exposure: on September 1, an options position reportedly sold to open 500 November $740 calls for about $4 million in premium, betting the rally has already peaked. The bearish setup is tied to technical weakness and relative underperformance versus the S&P 500. The stock closed at $779, down 2.3% on a day when a Middle East oil shock pushed the 10-year Treasury yield to a 19-month high.