Caterpillar (CAT) Offering Possible 38.5% Return Over the Next 22 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $137.00 short put and a strike $132.00 long put offers a potential 38.5% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $137.00 by expiration. The full premium credit of $1.39 would be kept by the premium seller. The risk of $3.61 would be incurred if the stock dropped below the $132.00 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 68.31 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

Buy Caterpillar Stock Ahead of Q2 Earnings, Stay for the Dividend?
Tue, 28 Jul 2020 21:54:09 +0000
Caterpillar is set to release its second quarter fiscal 2020 financial results before the opening bell on Friday, July 31. Is it time to buy CAT stock?

Caterpillar results likely to shed light on strength of economic recovery
Tue, 28 Jul 2020 16:11:13 +0000
When Caterpillar Inc reports earnings on Friday, investors will look for clues about the strength of economic recovery from the coronavirus pandemic. Since the heavy equipment maker is considered a bellwether for global economic activity, signals such as an earnings guidance or resumption of share repurchases should reassure Wall Street about underlying business conditions. Caterpillar's profit is expected to plunge 77% year-on-year to 64 cents a share, according to IBES data from Refinitiv.

Caterpillar Is Still Pointed Higher Ahead of Earnings
Tue, 28 Jul 2020 16:03:00 +0000
During Monday night's Mad Money program, Jim Cramer pointed out that two oil giants would be reporting earnings on Friday — Exxon Mobil and Chevron . Cramer said he's still betting on Chevron. In the updated daily bar chart of CAT, below, we used just six months of price activity to drill down closer to the price action.

Caterpillar (CAT) to Report Q2 Earnings: What's in Store?
Tue, 28 Jul 2020 15:23:03 +0000
Caterpillar's (CAT) second-quarter results likely to reflect the ongoing weakness in the manufacturing sector, and weak demand in its markets amid the coronavirus pandemic.

Dow's 75-point jump highlighted by gains for Dow Inc., Apple Inc. shares
Mon, 27 Jul 2020 13:52:00 +0000
DOW UPDATE Shares of Dow Inc. and Apple Inc. are posting strong returns Monday morning, lifting the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 76 points higher (0.

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