Caterpillar Offering Possible 12.61% Return Over the Next 9 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $95.00 short put and a strike $90.00 long put offers a potential 12.61% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $95.00 by expiration. The full premium credit of $0.56 would be kept by the premium seller. The risk of $4.44 would be incurred if the stock dropped below the $90.00 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 76.78 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

China Data Lifts Construction Equipment Stocks
Thu, 13 Feb 2014 18:38:59 GMT

Remain Cautious About Caterpillar
Thu, 13 Feb 2014 14:01:00 GMT

Mining Sector Trends Pointing Towards A Recovery Are Good News For Caterpillar
Thu, 13 Feb 2014 13:46:00 GMT

The GMAT: An exam with greater profit margins than Apple
Thu, 13 Feb 2014 00:18:00 GMT

Caterpillar, BHP, Rio Tinto Rise On China Import Data
Wed, 12 Feb 2014 22:11:00 GMT

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