Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $105.00 short put and a strike $97.50 long put offers a potential 8.38% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $105.00 by expiration. The full premium credit of $0.58 would be kept by the premium seller. The risk of $6.92 would be incurred if the stock dropped below the $97.50 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 56.93 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
Future of U.S. export lender at risk as conservatives mount attack
Wed, 25 Jun 2014 22:28:51 GMT
Reuters – The future of the U.S. Export-Import Bank was thrown further into doubt on Wednesday after an influential conservative lawmaker labeled the bank an example of corporate cronyism that benefits multi-nationals at the expense of taxpayers and smaller companies. Tea Party Republicans, led by Texas Representative Jeb Hensarling, have mounted a push to shut down the bank, ahead of a Sept. 30 deadline for Ex-Im's charter to be renewed. The bank's financing benefited “some of the largest, richest, most politically connected corporations in the world,” like Boeing, General Electric, Bechtel Corp and Caterpillar and it could not continue in its current form, Hensarling said. During the 6-1/2-hour hearing, Ex-Im Chairman Fred Hochberg urged lawmakers to keep the bank open, saying small businesses – which mainly receive short-term support – would be the first to feel the pinch.
Putting Caterpillar Inc.'s Last 8 Quarters Into Perspective: Why Do Investors Hang Around?
Wed, 25 Jun 2014 22:08:19 GMT
Export-Import Bank Under Fire; Boeing, GE Stocks Hit
Wed, 25 Jun 2014 19:53:00 GMT
Caterpillar Becomes #10 Most Shorted Dow Stock, Replacing Coca-Cola
Wed, 25 Jun 2014 13:32:00 GMT
Top Large-Cap Funds Mix It Up With Blend, Growth Styles
Tue, 24 Jun 2014 23:23:00 GMT
Related Posts
Also on Market Tamer…
Follow Us on Facebook