Caterpillar (CAT) Offering Possible 29.87% Return Over the Next 22 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $97.50 short put and a strike $92.50 long put offers a potential 29.87% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $97.50 by expiration. The full premium credit of $1.15 would be kept by the premium seller. The risk of $3.85 would be incurred if the stock dropped below the $92.50 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 62.65 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

Plight of company towns: finding a new identity
Thu, 23 Feb 2017 06:41:42 GMT

Plight of company towns: finding a new identity
Thu, 23 Feb 2017 06:41:42 GMT

Trump to seek jobs advice from firms that offshore U.S. work
Thu, 23 Feb 2017 03:10:45 GMT

Trump to seek jobs advice from firms that offshore U.S. work
Thu, 23 Feb 2017 03:09:17 GMT
Reuters – President Donald Trump, who has vowed to stop U.S. manufacturing from disappearing overseas, will seek job-creation advice on Thursday from at least five companies that are laying off thousands of workers as they shift production abroad. Caterpillar Inc, United Technologies Corp, Dana Inc, 3M Co and General Electric Co, are offshoring work to Mexico, China, India and other countries, according to a Reuters review of U.S. Labor Department records.

Trump seeks jobs advice from some firms that offshore U.S. work
Wed, 22 Feb 2017 20:33:55 GMT

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