Caterpillar (CAT) Offering Possible 11.11% Return Over the Next 9 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $108.00 short call and a strike $113.00 long call offers a potential 11.11% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $108.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $113.00 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 at 62.54 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

[$$] Engine Lawsuits Hit Caterpillar
Thu, 12 Jun 2014 23:22:59 GMT

CATERPILLAR INC Files SEC form 8-K, Change in Directors or Principal Officers, Submission of Matters to a Vote of Sec
Thu, 12 Jun 2014 20:20:24 GMT

Caterpillar Grinds its Gears as the Dow Loses 100 Points
Thu, 12 Jun 2014 18:40:14 GMT

The most important stock in the Dow is …
Thu, 12 Jun 2014 17:18:00 GMT

Caterpillar Ups Quarterly Dividend by 17%
Thu, 12 Jun 2014 15:40:12 GMT

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