Caterpillar (CAT) Offering Possible 15.61% Return Over the Next 30 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $105.00 short call and a strike $115.00 long call offers a potential 15.61% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $105.00 by expiration. The full premium credit of $1.35 would be kept by the premium seller. The risk of $8.65 would be incurred if the stock rose above the $115.00 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 below 20 which suggests that the stock is in oversold territory.

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 to Participate in the Citi 2014 Industrials Conference on September 23; Webcast Available
Thu, 18 Sep 2014 13:00:00 GMT
PR Newswire – PEORIA, Ill., Sept. 18, 2014 /PRNewswire/ — Caterpillar Inc. (NYSE: CAT) Vice President with responsibility for Strategic Services Mike DeWalt and Director of Investor Relations Rich Moore will speak …

How Caterpillar Delivers Earth-Moving Gains Despite the Downgrades
Thu, 18 Sep 2014 10:00:00 GMT

Stocks to avoid post-Fed
Wed, 17 Sep 2014 21:06:00 GMT

Terrance Paul, Developer of Teaching Software, Dies at 67
Wed, 17 Sep 2014 03:38:25 GMT
New York Times – Mr. Paul with his wife, Judi, created computerized teaching programs like Accelerated Reader that were widely adopted in American schools over the last 25 years.

CATERPILLAR INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a Direct Financial Obliga
Tue, 16 Sep 2014 20:15:08 GMT

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