Caterpillar (CAT) Offering Possible 29.2% Return Over the Next 8 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $147.00 short put and a strike $142.00 long put offers a potential 29.2% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $147.00 by expiration. The full premium credit of $1.13 would be kept by the premium seller. The risk of $3.87 would be incurred if the stock dropped below the $142.00 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 74.58 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

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With hefty amounts of stimulus in Europe to deal with the pandemic, China’s economy beginning to recover, and a weaker dollar, foreign markets are becoming more attractive to U.S. investors. For those looking to dip their toes into emerging markets but not get caught in escalating U.S.-China tensions, one option is investing in European and Japanese companies that get a large share of their sales from emerging markets. Investing in developed markets and global companies—think (NKE) (ticker: NKE) or (CAT) (CAT)—had long been a popular strategy to invest in emerging markets.

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Caterpillar (CAT) Stock Moves -1.68%: What You Should Know
Thu, 03 Sep 2020 21:45:09 +0000
Caterpillar (CAT) closed at $146.76 in the latest trading session, marking a -1.68% move from the prior day.

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