Caterpillar (CAT) Offering Possible 8.7% Return Over the Next 8 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $106.00 short call and a strike $111.00 long call offers a potential 8.7% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $106.00 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $111.00 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 32.47 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

Employers Stress-Test The Skills Gap
Fri, 12 Sep 2014 20:33:00 GMT
Investor's Business Daily – Open job positions soared to a dot-com-era high of 4.7 million in July, the Labor Department said, even as the number of people looking for work remained elevated. Nearly 300,000 of the open jobs were …

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Fri, 12 Sep 2014 17:28:08 GMT

Dow Jones (DJIA) Today: JPMorgan Chase (JPM) Leads The Day Higher, Caterpillar (CAT) Lags
Fri, 12 Sep 2014 14:00:00 GMT

Republican lawmakers see U.S. Ex-Im extension despite pressure
Thu, 11 Sep 2014 22:59:14 GMT
Reuters – Conservative groups kept up the pressure on Thursday to shut down the U.S. Export-Import Bank, but the agency's supporters and many lawmakers expect Congress to approve a deal next week to extend its charter …

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