Caterpillar (CAT) Offering Possible 20.48% Return Over the Next 21 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $170.00 short put and a strike $165.00 long put offers a potential 20.48% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $170.00 by expiration. The full premium credit of $0.85 would be kept by the premium seller. The risk of $4.15 would be incurred if the stock dropped below the $165.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Caterpillar is bullish and the probability of a rise 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 69.28 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

China construction machinery industry cheers strong 2020 sales but outlook uncertain
Wed, 25 Nov 2020 03:47:31 +0000
China's strong construction machinery sales are expected to continue until at least early next year but could be hobbled by any slowdown in Beijing's recent infrastructure investment drive, industry executives said. Construction equipment makers have experienced unexpectedly robust sales in China this year, especially for excavators, after the country embarked on a fresh building spree to bolster the economy following the emergence of the COVID-19 pandemic. XCMG Construction Machinery told Reuters its sales in China had jumped by over 20% this year versus 2019, although overseas sales have been hit by the global spread of the virus.

Caterpillar Again Named to Dow Jones Sustainability Indices
Fri, 20 Nov 2020 21:00:00 +0000
Caterpillar Inc. (NYSE: CAT) has been named to the 2020 Dow Jones Sustainability Indices (DJSI), including both the World and North America indices. This marks the 21st time Caterpillar has been included in the DJSI.

Exclusive: U.S. investigators were told to take ‘no further action' on Caterpillar, ex-client of Barr
Thu, 19 Nov 2020 01:46:33 +0000
Before William Barr became President Donald Trump’s choice to lead the U.S. Department of Justice, he represented Caterpillar Inc, a Fortune 100 company, in a federal criminal investigation by the department. Much was at stake for Caterpillar: Since 2018, the Internal Revenue Service has been demanding $2.3 billion (£1.7 billion) in payments from the company in connection with the tax matters under criminal investigation. A week after Barr was nominated for the job of attorney general, Justice officials in Washington told the investigative team in the active criminal probe of Caterpillar to take “no further action” in the case, according to an email written by one of the agents and reviewed by Reuters.

Cabot Continues Brand Expansion with Cabot Revelstoke in British Columbia
Tue, 17 Nov 2020 15:17:00 +0000
TORONTO, Nov. 17, 2020 /CNW/ — Cabot, the developer and operator of master-planned golf resort communities, announces its third resort with Cabot Revelstoke in British Columbia.

Caterpillar's October Retail Sales Down 17% on Weak Demand
Mon, 16 Nov 2020 16:23:04 +0000
Caterpillar's (CAT) global retail sales have been in the negative territory for 11 consecutive months owing to weak demand.

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