Caterpillar (CAT) Offering Possible 19.9% Return Over the Next 22 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $92.50 short put and a strike $87.50 long put offers a potential 19.9% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $92.50 by expiration. The full premium credit of $0.83 would be kept by the premium seller. The risk of $4.17 would be incurred if the stock dropped below the $87.50 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 34.56 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

US open: S&P 500 and Dow Jones Industrials hit intra-day records
Fri, 26 Dec 2014 16:01:00 GMT

Dow breaks 18,000
Tue, 23 Dec 2014 14:31:00 GMT

Caterpillar Celebrates 85 Years on the New York Stock Exchange
Mon, 22 Dec 2014 16:56:03 GMT
noodls – December 22, 2014 Caterpillar contact: Rachel Potts Global Government & Corporate Affairs Office: 309-675-6892 Mobile: 309-573-3444 Email: Potts_Rachel_A@cat.com FOR IMMEDIATE RELEASE Caterpillar Chairman …

Caterpillar Celebrates 85 Years on the New York Stock Exchange
Mon, 22 Dec 2014 15:00:00 GMT
PR Newswire – NEW YORK, Dec. 22, 2014 /PRNewswire/ — Caterpillar Inc. Chairman and CEO Doug Oberhelman rang the opening bell today on the New York Stock Exchange (NYSE) to mark the 85th anniversary of the company's listing on the NYSE, considered the world's foremost securities marketplace. Of the approximately 3,200 companies listed on the NYSE, Caterpillar (CAT) is among only 2 percent that have been listed for 85 years or more. “Not only are we celebrating 85 years on the NYSE this year, but next year we will also celebrate the 90th anniversary of Caterpillar as a company,” Oberhelman said. In 2014, the strength of our balance sheet and strong cash flow positioned Caterpillar to repurchase $4.2 billion in stock and to pay $1.6 billion in dividends.

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