Caterpillar (CAT) Offering Possible 36.24% Return Over the Next 11 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $83.00 short call and a strike $88.00 long call offers a potential 36.24% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $83.00 by expiration. The full premium credit of $1.33 would be kept by the premium seller. The risk of $3.67 would be incurred if the stock rose above the $88.00 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 26.69 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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Sun, 06 Nov 2016 14:04:15 GMT

CATERPILLAR INC Financials
Sat, 05 Nov 2016 17:04:07 GMT

Caterpillar Is Dow’s Best Performing Stock, Up 21% in 2016
Sat, 05 Nov 2016 13:35:07 GMT

[$$] Glen Barton Helped Steer Caterpillar Through a Strike That Sapped Union
Sat, 05 Nov 2016 04:11:10 GMT

Caterpillar Inc. — Moody's reviews Caterpillar's A2 long-term and Prime-1 short-term ratings for downgrade.
Fri, 04 Nov 2016 23:14:06 GMT

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