Caterpillar (CAT) Offering Possible 29.87% Return Over the Next 21 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $217.50 short call and a strike $222.50 long call offers a potential 29.87% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $217.50 by expiration. The full premium credit of $1.15 would be kept by the premium seller. The risk of $3.85 would be incurred if the stock rose above the $222.50 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 below 20 which suggests that the stock is in oversold territory.

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 (CAT) Gains As Market Dips: What You Should Know
Wed, 23 Jun 2021 21:45:09 +0000
Caterpillar (CAT) closed the most recent trading day at $213.79, moving +0.31% from the previous trading session.

Caterpillar (CAT) to Make Zero-Emission Machines for Nouveau Monde
Wed, 23 Jun 2021 13:46:01 +0000
Caterpillar's (CAT) agreement with Nouveau Monde for the development of zero-emission machines for its Matawinie Mine is likely to be a game changer for the mining industry.

The Zacks Analyst Blog Highlights: Apple, Caterpillar, The Home Depot, Dow and UnitedHealth Group
Wed, 23 Jun 2021 11:07:11 +0000
The Zacks Analyst Blog Highlights: Apple, Caterpillar, The Home Depot, Dow and UnitedHealth Group

Here Are 4 Stocks With Remarkable Interest Coverage Ratio
Tue, 22 Jun 2021 12:59:12 +0000
A company that is capable of generating earnings well above its interest expense can withstand financial hardship. Companies such as Herc Holdings (HRI), Dillard's (DDS), Floor & Decor (FND) and Caterpillar (CAT) are sound enough to meet financial obligations.

Miners Betting on Automation to Enhance Productivity & Efficiency
Tue, 22 Jun 2021 12:45:12 +0000
Miners like BHP, RIO and VALE are resorting to automation to boost operation efficiency. In sync with this, RIO partners with CAT to implement the world's first fully autonomous water truck at mine.

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