Caterpillar Offering Possible 11.61% Return Over the Next 22 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 11.61% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $0.52 would be kept by the premium seller. The risk of $4.48 would be incurred if the stock dropped below the $85.00 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 below 20 which suggests that the stock is in oversold 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

The Caterpillar Way – Unjustified Optimism
Sat, 01 Feb 2014 17:36:42 GMT
Seeking Alpha – In March 2011 Caterpillar presented investors with its vision going forward and provided an optimistic long-term goal of $15-$20 in EPS by 2015: By 2012 Caterpillar ( CAT ) seemed to be on track to achieve …

America's 10 fastest-growing economies
Sat, 01 Feb 2014 13:03:19 GMT
USA TODAY – National economic growth has a similar effect on smaller local economies throughout the country.

Buy Caterpillar Before Sales Turn Around
Sat, 01 Feb 2014 06:06:53 GMT
Seeking Alpha – Caterpillar's ( CAT ) quarterly results pretty much revealed what many investors were already expecting: ongoing sales declines. Caterpillar reported fourth quarter 2013 revenues of $14.4 billion which …

Caterpillar to Repurchase $1.7B Shares
Fri, 31 Jan 2014 21:40:03 GMT
Zacks – Caterpillar announced its intention to purchase approximately $1.7 billion of its common stock.

For companies, a rocky road ahead in emerging markets
Fri, 31 Jan 2014 19:06:05 GMT

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