Caterpillar (CAT) Offering Possible 9.65% Return Over the Next 27 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $145.00 short put and a strike $135.00 long put offers a potential 9.65% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $145.00 by expiration. The full premium credit of $0.88 would be kept by the premium seller. The risk of $9.12 would be incurred if the stock dropped below the $135.00 long put 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 77.07 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

Caterpillar (CAT) Is Not Only a Strong Buy Stock, It's Cheap
Thu, 17 May 2018 22:40:10 +0000
Shares of Caterpillar (CAT) have soared nearly 54% over the last year, which might cause some investors to think that the construction and mining equipment powerhouse's stock is expensive. But that doesn't appear to be the case at all. Let's dive into Caterpillar's recent price movement and growth projections to help show why CAT is currently a strong buy stock that also presents strong value.

5 Manufacturing Stocks to Buy as Industrial Production Rises
Thu, 17 May 2018 13:44:01 +0000
Manufacturing output increased in April after remaining unchanged over March.

6 Reasons to Add Rockwell Automation to Your Portfolio Now
Thu, 17 May 2018 13:09:01 +0000
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Caterpillar and Two Industrial Goods Stocks on Our Radar
Thu, 17 May 2018 12:45:00 +0000
On Wednesday, May 16, 2018, US markets saw broad based gains with eight out of nine sectors finishing the trading sessions in green. On Wednesday, shares in Duluth, Georgia headquartered AGCO Corp. recorded a trading volume of 607,730 shares.

The Upside Remains Huge for Caterpillar Inc.
Thu, 17 May 2018 11:50:31 +0000
Caterpillar Inc. (NYSE:CAT) crushed estimates and raised guidance in its April 24 release — a great one-two punch. Sales were strong around the world, with Asia-Pacific growing 44%, North America up 33%, Europe/Africa/Middle East up 25% and Latin America up 24%. This is great news for the global economy as CAT’s sales of construction and mining equipment were quite strong and management cited construction demand in North America and infrastructure strength in China.

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