Caterpillar (CAT) Offering Possible 63.93% Return Over the Next 27 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $232.50 short call and a strike $237.50 long call offers a potential 63.93% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $232.50 by expiration. The full premium credit of $1.95 would be kept by the premium seller. The risk of $3.05 would be incurred if the stock rose above the $237.50 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 42.18 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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Fri, 23 Apr 2021 10:59:10 +0000
Roper's (ROP) first-quarter 2021 earnings are expected to have benefited from a solid demand environment and strong application software segment, driven by an effective capital deployment strategy.

5 Must-Buy Corporate Giants Ahead of Q1 Earnings Next Week
Fri, 23 Apr 2021 09:49:09 +0000
We have narrowed down our search to five corporate bigwigs slated to release first-quarter earnings results next week. These are: XOM, CVX, CAT, ICE and TXN.

Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
Thu, 22 Apr 2021 21:45:09 +0000
Caterpillar (CAT) closed at $228.89 in the latest trading session, marking a -1.54% move from the prior day.

What's in the Cards for Rockwell Automation's (ROK) Q2 Earnings?
Thu, 22 Apr 2021 16:50:04 +0000
Rockwell Automation's (ROK) Q2 results are likely to reflect demand improvement in its end-markets as well as benefits from cost-saving actions.

Caterpillar (CAT) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Thu, 22 Apr 2021 16:33:04 +0000
Caterpillar (CAT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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