Caterpillar (CAT) Offering Possible 13.9% Return Over the Next 24 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $125.00 short call and a strike $135.00 long call offers a potential 13.9% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $125.00 by expiration. The full premium credit of $1.22 would be kept by the premium seller. The risk of $8.78 would be incurred if the stock rose above the $135.00 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 58.93 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

Bulls And Bears Of The Week: Caterpillar, Facebook, Microsoft And More
Sun, 19 Apr 2020 16:56:35 +0000
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included e-commerce, software and social media leaders.Bearish calls included the iPhone maker and a top video streamer.The major U.S. indexes saw another gain for the week, led by the 6% rise in the Nasdaq. Big banks kicked off the first-quarter earnings reporting season, new jobless numbers remained ugly, the president pushed to restart the U.S. economy by reopening businesses and there were signs that things might be looking up for oil.Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are some of this past week's most bullish and bearish posts that are worth another look.Bulls Amazon.com, Inc. (NASDAQ: AMZN) has become a utility in this crisis, according to one expert quoted in Tanzeel Akhtar's "How The COVID-19 Pandemic Turned Amazon, Netflix Into Essential Businesses."In "Software Rises Above Semiconductors And Hardware As Tech Heads Into Earnings Season," J.J. Kinahan shares why its strong balance sheet should help offer "downside protection" to Microsoft Corporation (NASDAQ: MSFT)."Facebook Option Traders Make M Bets On Multi-Year Rally" by Wayne Duggan looks at how smart money appears to be buying the Facebook, Inc. (NASDAQ: FB) dip. Will its bullish momentum continue for another two years?Priya Nigam's "Raytheon Seems Well Positioned Amid Coronavirus, Says Goldman Sachs" says Raytheon Technologies Corp (NYSE: RTX) is likely to see little near-term impact from COVID-19.For additional bullish calls, also have a look at "10 Stocks Hitting All-Time Highs Amid The COVID-19 Pandemic" and "Comcast's Peacock Takes Well-Timed Flight."Bears Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) are cautious, rather than bargain hunting. So says "Charlie Munger Says Berkshire Playing It Safe During Coronavirus; Outcome Of Crisis Could Be 'A Different Kind Of Mess'" by Jayson Derrick.Wayne Duggan's "Goldman Turns Bearish On Apple, Qualcomm, Projects 36% Drop In Q2 iPhone Sales" discusses why COVID-19 could take a bigger bite out of Apple Inc. (NASDAQ: AAPL) than investors realize."BofA Downgrades Caterpillar, Says Energy Problem Is Here To Stay" by Priya Nigam looks at why buying Caterpillar Inc. (NYSE: CAT) in a recession may not work this time around.In Elizabeth Balboa's "Roku Analysts On Streaming Growth, Early Q1 Data: 'Path To Profitability Is Unclear'," see what's offsetting the strength in Roku Inc (NASDAQ: ROKU).Be sure to check out "9 Worst-Performing Stocks Of 2020: Buy, Sell Or Hold?" and "Where Will The S&P 500 Be By 2030? Here's One Prediction" for additional bearish calls.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Berkshire Hathaway, Disney, SoftBank And More * Barron's Picks And Pans: Post-Pandemic Ideas, Safe Dividends And More * Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The Zacks Analyst Blog Highlights: Caterpillar, Terex, Deere & Company, AGCO and Sharps Compliance
Fri, 17 Apr 2020 13:57:01 +0000
The Zacks Analyst Blog Highlights: Caterpillar, Terex, Deere & Company, AGCO and Sharps Compliance

Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
Thu, 16 Apr 2020 21:50:09 +0000
Caterpillar (CAT) closed at $113.22 in the latest trading session, marking a +1.52% move from the prior day.

Caterpillar Stock Falls 5%
Wed, 15 Apr 2020 10:24:00 +0000
Investing.com – Caterpillar (NYSE:CAT) Stock fell by 5.14% to trade at $110.53 by 10:22 (14:22 GMT) on Wednesday on the NYSE exchange.

America's manufacturing activity is about to crash by the most since World War II: Goldman Sachs
Tue, 14 Apr 2020 17:55:19 +0000
Goldman Sachs is out with a dour read on the state of the U.S. manufacturing sector.

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