Caterpillar (CAT) Offering Possible 17.37% Return Over the Next 7 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 17.37% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $72.50 by expiration. The full premium credit of $0.74 would be kept by the premium seller. The risk of $4.26 would be incurred if the stock rose above the $77.50 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 28.28 level which suggests that the stock is neither overbought nor oversold at this time.

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Caterpillar ready to move into Cuban market once embargo lifted: CEO
Thu, 12 May 2016 02:59:38 GMT
Reuters – Caterpillar Inc, the world's largest maker of heavy equipment, is ready to move swiftly into the Cuban market once the U.S. trade embargo is lifted, Chief Executive Doug Oberhelman said on Wednesday after meeting with Cuban ministers in Havana. The detente between the United States and Cuba has raised hopes that full commercial ties will soon be restored between the former Cold War foes. Caterpillar (CAT.N), based in Peoria, Illinois, is one of several U.S. companies looking at ways to gain an early foothold in the Communist-ruled island, which had been largely off bounds to U.S. business for more than five decades.

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