Caterpillar (CAT) Offering Possible 13.64% Return Over the Next 18 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $101.00 short call and a strike $106.00 long call offers a potential 13.64% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $101.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $106.00 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 20.66 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

CATERPILLAR INC Files SEC form 8-K, Other Events
Tue, 30 Sep 2014 20:20:13 GMT

India's Modi promises U.S. CEOs a return to market reforms
Mon, 29 Sep 2014 22:48:52 GMT
Reuters – By James B. Kelleher (Reuters) – Indian Prime Minister Narendra Modi told nearly a dozen U.S. company chiefs on Monday that he is committed to liberalizing his country's economy, which has underperformed …

Factory construction boosts economy
Sun, 28 Sep 2014 11:00:08 GMT

Why multinationals aren't adding U.S. jobs
Sun, 28 Sep 2014 09:45:49 GMT
USA TODAY – Multinational companies' intense focus on the bottom line holds back U.S. expansion.

Caterpillar Invests $2.5 Million to End Extreme Poverty
Thu, 25 Sep 2014 16:00:00 GMT
PR Newswire – NEW YORK, Sept. 25, 2014 /PRNewswire/ — Continuing its efforts to alleviate poverty worldwide, Caterpillar Inc. (NYSE: CAT) and the Caterpillar Foundation are making a $2.5 million investment in The Global …

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