Caterpillar (CAT) Offering Possible 18.48% Return Over the Next 17 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 $110.00 long call offers a potential 18.48% return on risk over the next 17 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 $0.78 would be kept by the premium seller. The risk of $4.22 would be incurred if the stock rose above the $110.00 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 28.55 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

How the Dow Jones average fared Wednesday
Wed, 30 Jul 2014 20:54:15 GMT

Caterpillar to Repurchase $2.5B Worth of Common Stock
Wed, 30 Jul 2014 19:51:47 GMT

Caterpillar upgraded by Tigress Financial
Wed, 30 Jul 2014 14:34:49 GMT

Caterpillar Announces $2.5 Billion Accelerated Stock Repurchase
Tue, 29 Jul 2014 18:02:36 GMT
noodls – July 29, 2014 FOR IMMEDIATE RELEASE PEORIA, Ill. – Caterpillar Inc. (NYSE: CAT) today announced it has entered into definitive agreements with Société Générale to purchase a total of $2.5 billion of its …

Caterpillar Share Repurchases Trend Lower
Tue, 29 Jul 2014 17:09:44 GMT

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