Caterpillar (CAT) Offering Possible 38.89% Return Over the Next 15 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $114.00 short put and a strike $109.00 long put offers a potential 38.89% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $114.00 by expiration. The full premium credit of $1.40 would be kept by the premium seller. The risk of $3.60 would be incurred if the stock dropped below the $109.00 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 42.46 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

Edited Transcript of CAT earnings conference call or presentation 28-Apr-20 12:30pm GMT
Wed, 29 Apr 2020 03:57:02 +0000
Q1 2020 Caterpillar Inc Earnings Call

Caterpillar Reports 1st-Quarter Results
Tue, 28 Apr 2020 21:09:20 +0000
Industrial giant’s sales fell across all business segments and geographies Continue reading…

Caterpillar Inc (CAT) Q1 2020 Earnings Call Transcript
Tue, 28 Apr 2020 21:00:58 +0000
CAT earnings call for the period ending March 31, 2020.

Caterpillar Loses Momentum as 1st-Quarter Volumes Decrease
Tue, 28 Apr 2020 20:59:58 +0000
The construction equipment company is strengthening liquidity to offset slow sales Continue reading…

Stocks Finish Down as Dow Pares Gains and Big Tech Slumps
Tue, 28 Apr 2020 20:15:00 +0000
The Dow on Tuesday gives back gains and finishes lower as consumer confidence sinks and big tech stocks fall.

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