Caterpillar (CAT) Offering Possible 60% Return Over the Next 29 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $125.00 short put and a strike $115.00 long put offers a potential 60% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $125.00 by expiration. The full premium credit of $3.75 would be kept by the premium seller. The risk of $6.25 would be incurred if the stock dropped below the $115.00 long put 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 up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 58.62 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 Close Higher Tuesday After Retail Sales Increase 18%
Tue, 16 Jun 2020 23:00:45 +0000
Dow Jones gains 2.04% Continue reading…

Caterpillar, Merck share gains contribute to Dow's 484-point rally
Tue, 16 Jun 2020 19:07:00 +0000
DOW UPDATE The Dow Jones Industrial Average is rallying Tuesday afternoon with shares of Caterpillar and Merck seeing positive momentum for the blue-chip average. The Dow (DJIA) is trading 484 points higher (1.

US STOCKS-Wall Street jumps on glimmers of economic recovery
Tue, 16 Jun 2020 18:13:28 +0000
Wall Street surged on Tuesday as a record jump in retail sales indicated the U.S. economy is on the road to recovery, five months into its pandemic-inflicted recession. The Dow and the S&P remain about 11% and 8% below their respective record closing highs reached in February, while the tech-heavy Nasdaq hovers about 1% below its all-time closing high reached on June 10. Data released by the Commerce Department showed retail sales jumped by a record 17.7% in May, blowing past the 8% increase analysts expected.

Dow surges 561 points on gains in Caterpillar, Merck shares
Tue, 16 Jun 2020 18:06:00 +0000
DOW UPDATE The Dow Jones Industrial Average is soaring Tuesday afternoon with shares of Caterpillar and Merck leading the way for the price-weighted average. The Dow (DJIA) is trading 561 points higher (2.

US STOCKS-Wall St jumps as May retail sales boost hopes of swift recovery
Tue, 16 Jun 2020 17:11:24 +0000
U.S. stocks advanced on Tuesday after a record surge in May retail sales revived hopes of a swift post-pandemic economic rebound, with sentiment also lifted by data showing reduced COVID-19 death rates in a trial of a generic steroid drug. A Commerce Department report showed overall retail receipts rose 17.7% last month as Americans resumed spending after weeks of lockdown, although the rebound retraces only a fraction of the historic drops in March and April. “We're continuing to see better-than-expected economic data fuel this bull rally,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

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