Caterpillar Offering Possible 11.11% Return Over the Next 24 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 11.11% 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 $87.50 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock dropped below the $82.50 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 53.92 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

40% Savings on Fuel Costs Could Be Right Around the Corner
Wed, 29 Jan 2014 15:15:58 GMT
Motley Fool – The proof is in; LNG works for mining companies. It could be a big cost saver for the industry over the long term.

Caterpillar Inc. Is Finally Turning Around
Wed, 29 Jan 2014 12:00:05 GMT
Motley Fool – With a solid earnings beat, management at Caterpillar is showing that it remains dedicated to improving shareholder value and long-term growth.

Caterpillar Reports Moderating Declines in Mining, Rebounding Results in Construction and Engines, and Solid Free Cash Flow
Wed, 29 Jan 2014 12:00:00 GMT
Morningstar – Cat's fourth quarter sees construction rebound in line with our expectations; our fair value estimate remains $94.

A Few Reasons Why I Am Bullish On Caterpillar
Tue, 28 Jan 2014 23:14:29 GMT
Seeking Alpha – The year 2013 was a challenging year for Caterpillar ( CAT ) due to weak demand for its mining and construction equipments. Still, it was able to make a reasonable profit in each quarter. Recently, the …

McDonald's, Caterpillar Among Dow Stocks With Rising Short Activity
Tue, 28 Jan 2014 22:09:00 GMT
Forbes – The most recent short interest data has just been released by the NASDAQ for the 01/15/2014 settlement date, and we here at Dividend Channel have sifted through this fresh data and screened out these five Dow Jones Industrial Average components. A metric we find particularly useful when comparing short interest […]

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