Caterpillar Offering Possible 14.16% Return Over the Next 36 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 14.16% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $87.50 by expiration. The full premium credit of $0.62 would be kept by the premium seller. The risk of $4.38 would be incurred if the stock dropped below the $82.50 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 53.47 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

Update: Week Ending January 18, 2014
Sun, 19 Jan 2014 10:51:08 GMT
Seeking Alpha – The long awaited consolidation came, but it was not clear whether it was a one-day affair – Monday the 13th – as the charts suggest, or it is still going on, as my oscillators suggest. The consolidation …

The Grim Fairy Tale; Don't Sweat the Catcalls: Jim Cramer's Best Blogs
Sat, 18 Jan 2014 11:00:00 GMT
TheStreet – Catch up on Jim Cramer's thinking over the past week with his blogs on market fairy tales and long-term investing.

UK's drive to be offshore hub for Chinese currency gains pace
Fri, 17 Jan 2014 14:09:31 GMT
Reuters – UK Focus – After a patchy two years, London appears to be making headway in its drive to become Europe's main offshore hub for trading in China's currency, potentially delivering a big boost to its financial sector …

February 14th Options Now Available For Caterpillar (CAT)
Thu, 16 Jan 2014 15:51:00 GMT
TheStreet – Investors in Caterpillar Inc. saw new options begin trading today, for the February 14th expiration.

Negatives drive stocks higher?
Wed, 15 Jan 2014 23:00:00 GMT
CNBC – Mad Money host Jim Cramer dissects today's market activity specifically with banks on the rise.

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