Caterpillar Offering Possible 11.61% Return Over the Next 37 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 11.61% return on risk over the next 37 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 $0.52 would be kept by the premium seller. The risk of $4.48 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 55.43 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

February 14th Options Now Available For Caterpillar (CAT)
Thu, 16 Jan 2014 15:51:00 GMT
TheStreet – Investors in Caterpillar Inc. saw new options begin trading today, for the February 14th expiration.

10:28 am Caterpillar showing relative strength with price breaking out to a fresh multi-month high over 92
Thu, 16 Jan 2014 02:44:04 GMT
Briefing.com – 10:28 am Caterpillar showing relative strength with price breaking out to a fresh multi-month high over 92

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Wed, 15 Jan 2014 23:00:00 GMT
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Cramer: BofA had a ‘nirvana' quarter
Wed, 15 Jan 2014 20:43:00 GMT
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