Caterpillar (CAT) Offering Possible 9.34% Return Over the Next 15 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $152.50 short put and a strike $147.00 long put offers a potential 9.34% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $152.50 by expiration. The full premium credit of $0.47 would be kept by the premium seller. The risk of $5.03 would be incurred if the stock dropped below the $147.00 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

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Tue, 02 Jan 2018 18:39:54 +0000
The large multinational companies in the Dow Jones Industrial Average applaud the tax cuts, but only one of the 30 companies has announced any specific actions it would take as a result.

Caterpillar cooperates with IRS as it insists Swiss-made profits are legal
Tue, 02 Jan 2018 16:58:04 +0000
Caterpillar CEO Jim Umpleby says his company is fully cooperating with the IRS, but new tax laws may not change the way the company does business. The heavy-equipment maker headquartered in Deerfield, Illinois was accused of tax and accounting fraud last March in a report commissioned by the federal government. “We’re a values-based company,” Umpleby said, per a Tuesday report in The Wall Street Journal .

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Tue, 02 Jan 2018 13:16:00 +0000
David Martin, M-Cam CEO, discusses which companies made the list as top innovators in their sectors.

Caterpillar's $2 billion tax fight with the IRS could cha…
Tue, 02 Jan 2018 13:11:00 +0000
Federal officials have been investigating Caterpillar Inc.'s taxes and profits processed through its Swiss subsidiary, Caterpillar SARL.

Caterpillar's $2 billion tax fight with the IRS could change how US companies do business
Mon, 01 Jan 2018 21:27:52 +0000
Federal officials raided Caterpillar in March, and the outcome of the investigation could influence other U.S. companies' tax strategies, WSJ reports.

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