Caterpillar (CAT) Offering Possible 37.36% Return Over the Next 17 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $172.50 short put and a strike $167.50 long put offers a potential 37.36% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $172.50 by expiration. The full premium credit of $1.36 would be kept by the premium seller. The risk of $3.64 would be incurred if the stock dropped below the $167.50 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 74.13 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

Caterpillar's Sales Just Bottomed: Time to Buy?
Sat, 28 Nov 2020 12:39:00 +0000
What are the investment prospects for the cyclical stock now that its sales growth looks set to turn positive in 2021?

Why Caterpillar Inc. (NYSE:CAT) Looks Like A Quality Company
Sat, 28 Nov 2020 06:29:44 +0000
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will…

3 Top Dividend Aristocrat Stocks to Buy Now
Fri, 27 Nov 2020 14:15:00 +0000
Dividend Aristocrats are members of the S&P 500 that have increased their base dividends each year for at least 25 consecutive years. It's also a clear indication that each company has stayed committed to its dividend through various business cycles. Colgate-Palmolive (NYSE: CL), McDonald's (NYSE: MCD), and Caterpillar (NYSE: CAT) are three Dividend Aristocrats from three different sectors.

China construction machinery industry cheers strong 2020 sales but outlook uncertain
Wed, 25 Nov 2020 03:47:31 +0000
China's strong construction machinery sales are expected to continue until at least early next year but could be hobbled by any slowdown in Beijing's recent infrastructure investment drive, industry executives said. Construction equipment makers have experienced unexpectedly robust sales in China this year, especially for excavators, after the country embarked on a fresh building spree to bolster the economy following the emergence of the COVID-19 pandemic. XCMG Construction Machinery told Reuters its sales in China had jumped by over 20% this year versus 2019, although overseas sales have been hit by the global spread of the virus.

Caterpillar Again Named to Dow Jones Sustainability Indices
Fri, 20 Nov 2020 21:00:00 +0000
Caterpillar Inc. (NYSE: CAT) has been named to the 2020 Dow Jones Sustainability Indices (DJSI), including both the World and North America indices. This marks the 21st time Caterpillar has been included in the DJSI.

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