Caterpillar (CAT) Offering Possible 7.87% Return Over the Next 23 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $125.00 short put and a strike $115.00 long put offers a potential 7.87% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $125.00 by expiration. The full premium credit of $0.73 would be kept by the premium seller. The risk of $9.27 would be incurred if the stock dropped below the $115.00 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 above 80 which suggests that the stock is in overbought 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

Is GE a falling knife?
Mon, 23 Oct 2017 21:07:00 +0000
Rich Ross, Evercore ISI head of technical analysis, discusses the technical details for industrial stocks General Electric and Caterpillar with the "Fast Money" traders.

Time to Trim Longs on Caterpillar
Mon, 23 Oct 2017 18:26:00 +0000
Earnings announced on Tuesday.

Caterpillar Reports 11% Jump in Global Machine Retail Sales
Mon, 23 Oct 2017 16:28:00 +0000
Total retail machine sale spiked 43% year-over-year in Asia/Pacific.

[$$] Caterpillar Earnings: What to Watch
Mon, 23 Oct 2017 15:31:44 +0000
Caterpillar is due to report third-quarter earnings Tuesday, providing clues to the health of the global economy. The manufacturer’s stock has surged more than 50% over the past 12 months.

Key Predictions for Q3 Earnings Reports of CAT, PNR & SWK
Mon, 23 Oct 2017 15:14:03 +0000
As third-quarter earnings season gathers steam, we take a sneak peek into three industrial stocks Caterpillar (CAT), Pentair (PNR) and Stanley Black & Decker (SWK) before they report on Oct 24.

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