Caterpillar (CAT) Offering Possible 96.08% Return Over the Next 10 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $135.00 short call and a strike $140.00 long call offers a potential 96.08% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $135.00 by expiration. The full premium credit of $2.45 would be kept by the premium seller. The risk of $2.55 would be incurred if the stock rose above the $140.00 long call 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 down which suggests that the medium-term momentum for Caterpillar is bearish.

The RSI indicator is at 27.49 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 Indexes Lower Friday, but Higher for the Week
Fri, 07 Feb 2020 23:06:07 +0000
Nasdaq up 5.3% for the year Continue reading…

Dow's 275-point fall led by losses for shares of Dow Inc., Caterpillar
Fri, 07 Feb 2020 19:00:00 +0000
DOW UPDATE Dragged down by declines for shares of Dow Inc. and Caterpillar, the Dow Jones Industrial Average is falling Friday afternoon. Shares of Dow Inc. (DOW) and Caterpillar (CAT) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 278 points, or 0.

Stocks – S&P Falls, but Posts Best Week in 8 Months
Fri, 07 Feb 2020 16:19:00 +0000
By Yasin Ebrahim

A Close Look At Caterpillar Inc.’s (NYSE:CAT) 16% ROCE
Wed, 05 Feb 2020 16:16:07 +0000
Today we'll evaluate Caterpillar Inc. (NYSE:CAT) to determine whether it could have potential as an investment idea…

Construction Machinery Stocks Dig in at Support
Wed, 05 Feb 2020 16:15:37 +0000
Buyers returned to construction machinery stocks at key support levels Tuesday. Play for a rebound in these three large-cap leaders.

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