Caterpillar (CAT) Offering Possible 24.07% Return Over the Next 31 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $92.50 short put and a strike $87.50 long put offers a potential 24.07% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $92.50 by expiration. The full premium credit of $0.97 would be kept by the premium seller. The risk of $4.03 would be incurred if the stock dropped below the $87.50 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 42.46 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

Stocks sink as oil falls, China factories slumber
Thu, 23 Oct 2014 08:09:45 GMT

Caterpillar Inc Earnings Call scheduled for 12:00 pm ET today
Thu, 23 Oct 2014 04:32:00 GMT

Amazon, Microsoft Top What to Watch on Wall Street for Thursday, Oct. 23
Thu, 23 Oct 2014 00:45:00 GMT

As earnings season heats up, stocks close on the lows…
Wed, 22 Oct 2014 20:28:00 GMT

Caterpillar Earnings: What To Watch
Wed, 22 Oct 2014 19:16:53 GMT

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