Caterpillar (CAT) Offering Possible 18.76% Return Over the Next 10 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $138.00 short call and a strike $143.00 long call offers a potential 18.76% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $138.00 by expiration. The full premium credit of $0.79 would be kept by the premium seller. The risk of $4.21 would be incurred if the stock rose above the $143.00 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 68.14 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

Will Manitowoc Company Earnings Surprise the Markets the Way Caterpillar Did?
Sun, 05 Nov 2017 13:10:00 +0000
Manitowoc already gave investors a hint of what to expect from its third-quarter numbers.

Caterpillar to Participate in Baird Industrial Conference on November 7; Webcast Available
Fri, 03 Nov 2017 13:00:00 +0000
DEERFIELD, Ill. , Nov. 3, 2017 /PRNewswire/ — Caterpillar Inc. (NYSE: CAT) Director of Investor Relations Amy Campbell will speak at the Baird 2017 Industrial Conference on Tuesday, November 7, 2017 . …

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Ball Corp (BLL) Q3 Earnings Lag, '17 Financial Goals Updated
Thu, 02 Nov 2017 14:22:02 +0000
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Trade of the Day: Caterpillar Inc. (CAT)
Thu, 02 Nov 2017 12:46:35 +0000
CAT stands to benefit not only from the strong economic environment we are experiencing here in the United States (with 3% GDP growth in the third quarter) but also from the strong economic environment we are seeing abroad, especially in China. InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.

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