Caterpillar (CAT) Offering Possible 7.53% Return Over the Next 11 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $103.00 short call and a strike $108.00 long call offers a potential 7.53% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $103.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock rose above the $108.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Caterpillar is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Caterpillar is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Caterpillar

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The Caterpillar Foundation Announces $11 Million in Investments for Africa’s Future Through Water, Energy and Women
Tue, 05 Aug 2014 10:23:16 GMT
noodls – August 4, 2014 Caterpillar contact: Lisa Miller Global Government & Corporate Affairs (309) 494-4566 Miller_Lisa_M@cat.com FOR IMMEDIATE RELEASE The Caterpillar Foundation Announces $11 Million in Investments …

The Caterpillar Foundation Announces $11 Million in Investments for Africa's Future Through Water, Energy and Women
Tue, 05 Aug 2014 02:00:00 GMT
PR Newswire – WASHINGTON, Aug. 4, 2014 /PRNewswire/ — The Caterpillar Foundation, supported by Caterpillar Inc. (CAT), continues working to alleviate poverty worldwide, including on the African continent, through a series of investments. Since 2010 alone, corporate social innovation has driven the Caterpillar Foundation to invest $30 million in African programs that address access to clean water, energy, empowering girls and women and microfinance, as well as food and shelter. The Foundation targets investments to organizations working in areas of policy that will enable sustainable growth and development across the continent. “The Caterpillar Foundation is committed to finding ways to spur vibrant growth in Africa,” said Doug Oberhelman, Caterpillar Chairman & CEO. “Just as it has in other parts of the world, the Foundation is investing to help millions of Africans become economically self-sufficient.

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