Caterpillar (CAT) Offering Possible 19.33% Return Over the Next 25 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $107.00 short put and a strike $102.00 long put offers a potential 19.33% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $107.00 by expiration. The full premium credit of $0.81 would be kept by the premium seller. The risk of $4.19 would be incurred if the stock dropped below the $102.00 long put strike price.

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

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

The RSI indicator is above 80 which suggests that the stock is in overbought 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

Why Caterpillar Could Suffer From Low Growth in China, Mining Sector
Tue, 26 Aug 2014 10:00:00 GMT

Stocks end mixed; best week in 4 months for Dow, S&P
Fri, 22 Aug 2014 20:00:00 GMT

Caterpillar (CAT) July Sales down 9% Yet Graph Crawls Up
Fri, 22 Aug 2014 19:45:02 GMT

Why Caterpillar (CAT) Stock Is Up Today
Wed, 20 Aug 2014 16:36:00 GMT

Caterpillar July Sales Off 9%; Rate Of Decline Slows
Wed, 20 Aug 2014 15:28:47 GMT

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