Caterpillar (CAT) Offering Possible 17.92% Return Over the Next 39 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $90.00 short call and a strike $95.00 long call offers a potential 17.92% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $90.00 by expiration. The full premium credit of $0.76 would be kept by the premium seller. The risk of $4.24 would be incurred if the stock rose above the $95.00 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 at 30.1 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

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Wed, 14 Jan 2015 03:41:00 GMT

Caterpillar Inc. to Announce Full-Year and Fourth-Quarter 2014 Financial Results on January 27
Tue, 13 Jan 2015 15:43:07 GMT
noodls – January 13, 2015 Caterpillar contact: Rachel Potts Global Government & Corporate Affairs 309-675-6892 309-573-3444 Potts_Rachel_A@cat.com FOR IMMEDIATE RELEASE Caterpillar Inc. to Announce Full-Year and …

Caterpillar Inc. to Announce Full-Year and Fourth-Quarter 2014 Financial Results on January 27
Tue, 13 Jan 2015 14:00:00 GMT
PR Newswire – PEORIA, Ill., Jan. 13, 2015 /PRNewswire/ — Caterpillar Inc. (CAT) will release full-year and fourth-quarter 2014 financial results at 6:30 a.m. Central Time on Tuesday, January 27. The news release will be furnished to the U.S. Securities and Exchange Commission (SEC) via a Current Report on Form 8-K in compliance with applicable SEC rules. A real-time, listen-only teleconference of the quarterly results call that Caterpillar conducts with security analysts and institutional investors will begin at 10 a.m. Central Time on Tuesday, January 27.

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