Caterpillar (CAT) Offering Possible 21.36% Return Over the Next 22 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $100.00 short put and a strike $95.00 long put offers a potential 21.36% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $100.00 by expiration. The full premium credit of $0.88 would be kept by the premium seller. The risk of $4.12 would be incurred if the stock dropped below the $95.00 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 76.11 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

Caterpillar gets SEC subpoena over Bucyrus accounting
Fri, 31 Oct 2014 20:46:48 GMT
Reuters – Construction equipment company Caterpillar Inc on Friday said the U.S. Securities and Exchange Commission is investigating how it accounted for its July 2011 purchase of Bucyrus International Inc. In its quarterly report, Caterpillar said the Sept. 10 subpoena from the SEC seeks information about its accounting for goodwill relating to the $7.6 billion takeover of Bucyrus, a maker of mining equipment. Caterpillar said it is cooperating with the SEC and believes the matter will not materially affect its finances or liquidity.

SEC examines Caterpillar's accounting for Bucyrus
Fri, 31 Oct 2014 19:34:41 GMT

SEC examines Caterpillar's accounting for Bucyrus
Fri, 31 Oct 2014 19:34:41 GMT

[$$] Caterpillar Calls Its Accounting on Bucyrus Deal ‘Appropriate'
Fri, 31 Oct 2014 17:52:37 GMT

CATERPILLAR INC Files SEC form 10-Q, Quarterly Report
Fri, 31 Oct 2014 13:03:08 GMT

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