Caterpillar (CAT) Offering Possible 15.21% Return Over the Next 26 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $96.00 short put and a strike $91.00 long put offers a potential 15.21% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $96.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock dropped below the $91.00 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 at 59.28 level which suggests that the stock is neither overbought nor oversold at this time.

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

Stocks end little moved as oil back above $80 a barrel
Mon, 27 Oct 2014 20:00:00 GMT

Earnings Squad: TWTR, BWLD & CMI
Mon, 27 Oct 2014 18:21:00 GMT

Will Caterpillar (CAT) Stock Be Affected by This Analyst Advice?
Mon, 27 Oct 2014 17:52:00 GMT

Caterpillar: ‘Wait For a More Attractive Entry Point,' Raymond James Says
Mon, 27 Oct 2014 14:46:00 GMT

9:51 am Caterpillar pulls back to last Thursday's gap between 97.34 and 95.98
Mon, 27 Oct 2014 13:51:00 GMT

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