Caterpillar (CAT) Offering Possible 23.76% Return Over the Next 18 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $100.00 short call and a strike $105.00 long call offers a potential 23.76% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $100.00 by expiration. The full premium credit of $0.96 would be kept by the premium seller. The risk of $4.04 would be incurred if the stock rose above the $105.00 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 64.98 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

10-Q for Caterpillar, Inc.
Tue, 04 Nov 2014 00:08:29 GMT

It was a lackluster trading session for U.S. equities
Mon, 03 Nov 2014 21:31:00 GMT

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

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