Caterpillar (CAT) Offering Possible 21.95% Return Over the Next 33 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 $115.00 long call offers a potential 21.95% return on risk over the next 33 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 $1.80 would be kept by the premium seller. The risk of $8.20 would be incurred if the stock rose above the $115.00 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 24.21 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 Named to Dow Jones Sustainability Indices for 13th Year
Mon, 15 Sep 2014 18:00:00 GMT
PR Newswire – PEORIA, Ill., Sept. 15, 2014 /PRNewswire/ — Caterpillar Inc. (CAT) has been named to the 2014 Dow Jones Sustainability Indices (DJSI), recognizing Caterpillar as a sustainability leader in the Industrial Engineering sector. This marks the 13th year for Caterpillar to be included in the list since DJSI debuted in 1999. The annual DJSI process involves a thorough analysis of corporate economic, environmental and social performance factors, assessing issues such as innovation management, supply chain management, climate strategy, product stewardship, labor practices and health and safety. “Caterpillar has been committed to sustainability for many years because we know we can be profitable while also best serving our customers and our people by promoting the common good,” said Doug Oberhelman, chairman & CEO of Caterpillar.

Cramer's Mad Dash: Sell CAT before URI
Mon, 15 Sep 2014 13:23:00 GMT

Employers Stress-Test The Skills Gap
Fri, 12 Sep 2014 20:33:00 GMT
Investor's Business Daily – Open job positions soared to a dot-com-era high of 4.7 million in July, the Labor Department said, even as the number of people looking for work remained elevated. Nearly 300,000 of the open jobs were …

Stocks close down ahead of Fed meeting; energy hit
Fri, 12 Sep 2014 20:07:20 GMT

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Fri, 12 Sep 2014 17:28:08 GMT

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