Caterpillar Offering Possible 11.86% Return Over the Next 26 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 11.86% return on risk over the next 26 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 $0.53 would be kept by the premium seller. The risk of $4.47 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 78.86 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

Why Manitowoc Company, Inc. Is up 44% This Year Despite an Awful 2013 for Caterpillar Inc.
Mon, 23 Dec 2013 22:42:02 GMT
Motley Fool – After stumping the Street and beating Caterpillar with a solid 44% gain this year, Manitowoc looks ready to outperform the industry leader again in 2014.

Caterpillar commits to a restructuring plan for Gosselies, Belgium operations
Mon, 23 Dec 2013 21:37:29 GMT
theflyonthewall.com – Caterpillar commits to a restructuring plan for Gosselies, Belgium operations

The 4 Stocks That Moved the Market on Monday
Mon, 23 Dec 2013 21:32:06 GMT
24/7 Wall St. – December 23, 2013: Markets opened higher on Monday and remained well above the flat line all day. More opportunistic buying among value seekers probably gets the credit for the index increases on a light …

CATERPILLAR INC Files SEC form 8-K, Costs Associated with Exit or Disposal Activities
Mon, 23 Dec 2013 21:31:34 GMT

Caterpillar: Time for a Breakout?
Mon, 23 Dec 2013 19:52:00 GMT
Barrons.com – Yes, says MKM Partners Jonathan Krinsky, who says Caterpillar (CAT) is nearing levels that suggest more upside. Krinsky writes: Caterpillar has been a massive underperformer in 2013, essentially flat on …

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