Caterpillar (CAT) Offering Possible 7.3% Return Over the Next 9 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $100.00 short put and a strike $95.00 long put offers a potential 7.3% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $100.00 by expiration. The full premium credit of $0.34 would be kept by the premium seller. The risk of $4.66 would be incurred if the stock dropped below the $95.00 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 below 20 which suggests that the stock is in oversold territory.

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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The Caterpillar Foundation Announces $11 Million in Investments for Africa’s Future Through Water, Energy and Women
Tue, 05 Aug 2014 10:23:16 GMT
noodls – August 4, 2014 Caterpillar contact: Lisa Miller Global Government & Corporate Affairs (309) 494-4566 Miller_Lisa_M@cat.com FOR IMMEDIATE RELEASE The Caterpillar Foundation Announces $11 Million in Investments …

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