Caterpillar Offering Possible 14.94% Return Over the Next 30 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $85.00 short put and a strike $80.00 long put offers a potential 14.94% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $85.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock dropped below the $80.00 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 66.59 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

Evening Dow Report: Nike Reports Mixed Results While Gold's Plunge Threatens Caterpillar and General Electric
Fri, 20 Dec 2013 02:04:03 GMT
Motley Fool – After Wednesday's 293-point jump, the Dow Jones Industrials tacked on another 11 points today. Learn more about Nike's earnings report after the close and how GE and Caterpillar could get hurt from gold's …

Jim Cramer's ‘Mad Money' Recap: Some ‘Buys' for the New Year
Fri, 20 Dec 2013 01:22:00 GMT
TheStreet – Not every sector rallied today. Cramer details five you should buy.

US mining equipment makers set for $500m in fresh sales
Thu, 19 Dec 2013 22:47:24 GMT
Financial Times – Caterpillar said US mining equipment manufacturers are set for more than $500m in fresh sales after the approval of nearly $700m in government-backed financing for an Australian iron ore mine. On Thursday, …

Herb's ‘could have been' worst CEO list
Thu, 19 Dec 2013 19:26:00 GMT
CNBC – Which CEOs does CNBC Herb Greenberg think “could have been” the worst CEO of 2013. He says United Airlines' CEO Jeff Smisek is probably the worst CEO in the airlines industry.

Caterpillar, Rite Aid, and J.C. Penney Stumble One Day After Market Rally
Thu, 19 Dec 2013 18:08:04 GMT
Motley Fool – The major indexes are all heading south today after the taper-induced rally yesterday.

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