Caterpillar (CAT) Offering Possible 28.53% Return Over the Next 28 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $135.00 short put and a strike $125.00 long put offers a potential 28.53% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $135.00 by expiration. The full premium credit of $2.22 would be kept by the premium seller. The risk of $7.78 would be incurred if the stock dropped below the $125.00 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 61.94 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

Caterpillar bearish ‘death cross’ pattern ends longest bullish streak in decades
Wed, 18 Jul 2018 13:56:00 +0000
Caterpillar Inc.’s stock chart has produced a ‘death cross’ on Tuesday, to snap the longest bullish trend-following streak in at least 46 years, as the list of bearish technical patterns that have appeared in the last month just got a little longer.

Ex-Dividend Alert: Caterpillar Raised its Dividend By 10%; Will Trade Ex-Dividend on July 19, 2018
Wed, 18 Jul 2018 11:00:00 +0000
LONDON, UK / ACCESSWIRE / July 18, 2018 / Active-Investors has a free review on Caterpillar Inc. (NYSE: CAT) following the Company's announcement that it will begin trading ex-dividend on July 19, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on July 18, 2018. Active-Investors has initiated due-diligence on this dividend stock.

Goldman Sachs Turns Cautious On Machinery Stocks
Tue, 17 Jul 2018 20:07:08 +0000
The machinery cycle may be taking a turn for the worse, and one Wall Street analyst has adjusted his ratings on a handful of related stocks. The Analyst Goldman Sachs analyst Jerry Revich has made the …

All Three of Our Caterpillar Charts Look Bearish So Avoid the Long Side for Now
Tue, 17 Jul 2018 17:50:00 +0000
A bearish dead cross of the 50-day and 200-day moving averages is close to happening so let's check the charts again. In this updated daily bar chart of CAT, below, we can see that the declining 50-day moving average line is right on top of the cresting 200-day average line. Dead crosses (and golden crosses) tend to be late and well off the peak in price but there are many traders who take note of this signal.

Goldman Sachs cuts two industrial giants from "conviction…
Tue, 17 Jul 2018 17:22:00 +0000
The "Halftime Report" traders debate Goldman Sachs' cautious call on Caterpillar & Deere.

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