Caterpillar (CAT) Offering Possible 18.48% Return Over the Next 31 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $70.00 short put and a strike $65.00 long put offers a potential 18.48% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $70.00 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 dropped below the $65.00 long put 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 up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 74.49 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

The C-Suite Speaks: A Strong February
Tue, 15 Mar 2016 12:02:03 GMT

Allison Transmission Made Changes in Corporate Governance
Tue, 15 Mar 2016 11:54:52 GMT

Caterpillar Donates $500,000 for Preservation of Hemingway House in Cuba
Mon, 14 Mar 2016 14:00:00 GMT
PR Newswire – In accordance with U.S. and Cuba regulations, the donation will support the construction of an onsite conservation laboratory with archival storage facilities at the Hemingway Museum in Havana, known as the “Taller” building. The Taller is critically needed to ensure the safety and protection of the irreplaceable Hemingway artifacts and documents. The Taller is the first construction project in Cuba to use modern U.S. building materials since the 55-year-old trade embargo began.

Caterpillar Inc.: The Bull Case for 2016
Sat, 12 Mar 2016 14:00:00 GMT

Draghi's Best Shot; Why CAT Is Still a Dog: Best of Kass
Sat, 12 Mar 2016 02:00:00 GMT

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