Caterpillar (CAT) Offering Possible 29.53% Return Over the Next 16 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $129.00 short call and a strike $134.00 long call offers a potential 29.53% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $129.00 by expiration. The full premium credit of $1.14 would be kept by the premium seller. The risk of $3.86 would be incurred if the stock rose above the $134.00 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 37.76 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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Caterpillar (CAT) Down 8.2% Since Last Earnings Report: Can It Rebound?
Sun, 01 Mar 2020 16:30:04 +0000
Caterpillar (CAT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Caterpillar (CAT) Gains As Market Dips: What You Should Know
Fri, 28 Feb 2020 22:45:10 +0000
Caterpillar (CAT) closed the most recent trading day at $124.24, moving +0.79% from the previous trading session.

South Africa's Tongaat to sell starch business to Barloworld
Fri, 28 Feb 2020 15:34:20 +0000
Tongaat Hulett, South Africa's heavily indebted sugar producer, said on Friday it would sell its starch business to Barloworld for 5.35 billion rand ($351.10 million), including debt. Separately, Barloworld, a dealer for Caterpillar and other industrial equipment makers, said the starch business was highly cash generative, relatively asset light and a defensive investment. Tongaat said earlier this month that it was in talks to sell the unit, Tongaat Hulett Starch (TSH), which, according to its website, is Africa's largest producer of starch, glucose and related products.

Forget Caterpillar, Buy These 5 Industrial Stocks Instead
Fri, 28 Feb 2020 14:02:02 +0000
While the near-term prospects for Caterpillar (CAT) look bleak at the moment, we suggest five industrial stocks that are poised better with positive growth projections and estimate revision activity.

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