Caterpillar Offering Possible 11.86% Return Over the Next 17 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $85.00 short call and a strike $90.00 long call offers a potential 11.86% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $85.00 by expiration. The full premium credit of $0.53 would be kept by the premium seller. The risk of $4.47 would be incurred if the stock rose above the $90.00 long call 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 45.56 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

Is Caterpillar's Dividend Streak in Jeopardy?
Wed, 30 Oct 2013 14:06:09 GMT
Motley Fool – Caterpillar has raised its dividend for 20 years in a row, but with Cummins and Joy Global having confirmed weakness in the mining sector, could the Dow component get stopped short of becoming a Dividend …

Why You Should Consider Joy Global
Wed, 30 Oct 2013 13:44:18 GMT
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[$$] Caterpillar to Close Texas Plant
Tue, 29 Oct 2013 21:48:18 GMT
The Wall Street Journal – The company said the decision to close Kilgore was made ‘to align our costs with the environment' as demand for mining equipment falls.

With tough market at home, China's heavy gear makers gain traction overseas
Tue, 29 Oct 2013 20:56:40 GMT
Reuters – When Guangxi Liugong Machinery was bidding to sell wheel loaders to a Thai rice merchant a few years ago, company president Zeng Guangan knew he needed to customize his equipment to beat off Komatsu Ltd …

Earnings Season in Focus: What's Next for Stocks?
Tue, 29 Oct 2013 20:37:12 GMT
Zacks – We take a look at some of the companies that have been in focus this earnings season, and where the market is going next.

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