Caterpillar (CAT) Offering Possible 53.85% Return Over the Next 7 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $217.50 short put and a strike $212.50 long put offers a potential 53.85% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $217.50 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $3.25 would be incurred if the stock dropped below the $212.50 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 68.27 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 (CAT) Outpaces Stock Market Gains: What You Should Know
Wed, 10 Mar 2021 22:50:10 +0000
Caterpillar (CAT) closed at $221.06 in the latest trading session, marking a +1.96% move from the prior day.

Has Caterpillar (CAT) Outpaced Other Industrial Products Stocks This Year?
Tue, 09 Mar 2021 16:30:04 +0000
Is (CAT) Outperforming Other Industrial Products Stocks This Year?

4 Reasons Caterpillar Stock Shot Up 18.1% to an All-Time High in February
Mon, 08 Mar 2021 16:15:00 +0000
Shares of Caterpillar (NYSE: CAT) soared 18.1% in the month of February, according to data provided by S&P Global Market Intelligence. If January offered investors a glimpse of what's happening within the company, February was all about positive macro developments that set the blue chip stock on fire. Caterpillar bulls got their first kickoff on Jan. 29 when the company topped estimates on its fourth-quarter revenue and earnings, and management sounded optimistic about 2021 given a better-than-expected recovery in most end markets, particularly construction.

2 Stocks Dividend Investors Will Love
Sat, 06 Mar 2021 13:41:00 +0000
Dividends provide a level of calm and consistency for investors worried about the next market crash. Cleaning conglomerate Clorox (NYSE: CLX) and international construction and energy leader Caterpillar (NYSE: CAT) are two dividend stocks that investors are sure to love. After a record fiscal year 2020 (FY20), Clorox began FY21 with a strong start.

CAT Stock Shows There's More To Consider Than Just Growth Stocks
Fri, 05 Mar 2021 21:20:28 +0000
With our usual focus on growth, it might be odd to think of an old Dow Jones industrials stock for swing trading.

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