Caterpillar (CAT) Offering Possible 31.58% Return Over the Next 28 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $162.50 short put and a strike $157.50 long put offers a potential 31.58% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $162.50 by expiration. The full premium credit of $1.20 would be kept by the premium seller. The risk of $3.80 would be incurred if the stock dropped below the $157.50 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 above 80 which suggests that the stock is in overbought territory.

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

Caterpillar (CAT) to Report Q3 Earnings: What's in Store?
Wed, 21 Oct 2020 14:12:02 +0000
Caterpillar's (CAT) third-quarter 2020 results are likely to reflect the impact of lower backlog and reduced capital spending at customers end.

Caterpillar Inc. Announces Officer Retirements and Changes to its Executive Office
Tue, 20 Oct 2020 20:30:00 +0000
Caterpillar Inc. (NYSE: CAT) announced today changes to its Executive Office with the retirements of Group Presidents William (Billy) P. Ainsworth and Ramin Younessi at year-end 2020, and appointments of Joseph (Joe) E. Creed and Anthony (Tony) D. Fassino, effective January 1, 2021.

Caterpillar Target Up on Infrastructure Stimulus Potential
Tue, 20 Oct 2020 18:10:00 +0000
UBS analyst Steven Fisher lifted his price target on construction-equipment maker Caterpillar to $180 from $130, affirming a neutral rating.

Caterpillar stock jumps toward a record after UBS analyst boosts target by 38%
Tue, 20 Oct 2020 17:32:00 +0000
Shares of Caterpillar Inc. rallied Tuesday toward a record high, after UBS analyst Steven Fisher raised his price target by 38%, citing expectations that infrastructure stimulus will be coming soon.

Caterpillar (CAT) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Tue, 20 Oct 2020 16:31:04 +0000
Caterpillar (CAT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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