OPEN: HBC Mar 80/85 BRCS & CAT Mar 70 Put Calendar

My trading group and I are doing HBC and CAT today...

HBC:
Stock has been below the 30, 50 & 200 day moving averages since Nov. and today it looks like it is testing the 30 again as well as today it opened and remained below yesterday's open and close and it's still heading back down, so we are putting on a bear call (vertical) spread.

Sold Mar 80 for $0.82 credit and bought Mar 85 Call for $0.20 debit giving me a total credit of $0.62.

This gives me a yield of 0.62/5-0.62 risk= 14.2% in 1 month!

CAT:

We saw that CAT was trading in a channel between 70 & 80 since August, so we put on a put calendar by buying the Mar 70 put for $3.65 and selling the May 70 put for $1.76 for a total debit of $1.89.

1.76 credit/3.65 debit = 48% yield in 1 month! WOW!

No stop loss is needed since it would be below $1.00.