Caterpillar (CAT) Offering Possible 42.86% Return Over the Next 29 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $134.00 short put and a strike $129.00 long put offers a potential 42.86% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $134.00 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $3.50 would be incurred if the stock dropped below the $129.00 long put 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 up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 67.12 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

Caterpillar Inc. to Announce Second-Quarter 2020 Financial Results on July 31
Fri, 17 Jul 2020 13:30:00 +0000
Caterpillar Inc. (NYSE: CAT) will release second-quarter 2020 financial results at 5:30 a.m. CDT on Friday, July 31. The release will be available at investors.caterpillar.com/financials/quarterly-results and the full text of the news release will also be available on PR Newswire at about 5:30 a.m. CDT. The news release will be furnished to the U.S. Securities and Exchange Commission (SEC) via a Current Report on Form 8-K in compliance with applicable SEC rules.

Closing Bell 7/16/20: Stocks Step Back
Thu, 16 Jul 2020 21:03:32 +0000
Rising cases of coronavirus across the U.S. and elevated first-time unemployment claims weighed on the market.

Cross-Sector: Market Data Highlights
Thu, 16 Jul 2020 16:05:09 +0000

These 10 Dividend Aristocrats Recently Raised Their Payouts
Thu, 16 Jul 2020 12:59:00 +0000
The Aristocrats returned minus 35% from Jan. 1 through March 23, trailing the broader market by about five percentage points. But since then, the Aristocrats’ total return is about 42%, close to the S&P 500’s result.

4 Farm and Construction Machinery Companies With High Financial Strength
Tue, 14 Jul 2020 23:24:54 +0000
Caterpillar gives Dow a late surge Continue reading…

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