Caterpillar (CAT) Offering Possible 12.36% Return Over the Next 12 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $109.00 short call and a strike $114.00 long call offers a potential 12.36% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $109.00 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $114.00 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 58.79 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

Congress coming back, must act to avoid shutdown
Sun, 07 Sep 2014 16:36:09 GMT

Stocks Give Back Some Gains; Costco Breaks Out
Thu, 04 Sep 2014 17:37:00 GMT

[$$] Caterpillar Unit Loses Some Railcar-Repair Contracts
Thu, 04 Sep 2014 17:35:54 GMT

Caterpillar's (CAT) Cost Savings Surmount Mining Weakness
Thu, 28 Aug 2014 16:00:03 GMT

Why Caterpillar Could Suffer From Low Growth in China, Mining Sector
Tue, 26 Aug 2014 10:00:00 GMT

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