Caterpillar (CAT) Offering Possible 10.62% Return Over the Next 23 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $220.00 short call and a strike $240.00 long call offers a potential 10.62% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $220.00 by expiration. The full premium credit of $1.92 would be kept by the premium seller. The risk of $18.08 would be incurred if the stock rose above the $240.00 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 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

As a World First, Nouveau Monde Has Signed a Collaboration Agreement with Caterpillar for the Development of a Zero-Emission Solution for the Matawinie Mine
Tue, 22 Jun 2021 07:00:00 +0000
Nouveau Monde Has Signed a Collaboration Agreement with Caterpillar Eric Desaulniers, Nouveau Monde CEO, and Denise Johnson, Caterpillar Group President, signed a collaboration agreement for the development of a zero-emission fleet for the Matawinie Mine. Nouveau Monde and Caterpillar have signed an agreement pursuant to which Caterpillar will develop, test and produce Cat® “zero-emission machines” for the Matawinie graphite mining project in Saint-Michel-des-Saints, Québec, Canada The collabora

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Fri, 18 Jun 2021 16:05:18 +0000
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Fri, 18 Jun 2021 13:37:01 +0000
U.S. stock markets closed mixed in Thursday's session as investors continued to take note of the U.S. Federal Reserve's comments on potential rate hikes and inflation expectations while heavyweight technology shares rallied, prompted by falling Treasury yields.

Here's Why You Should Add Caterpillar (CAT) to Your Portfolio
Fri, 18 Jun 2021 13:32:01 +0000
Favorable demand in end markets, positive movement in earnings estimates and higher-than-industry dividend yield makes Caterpillar (CAT) a strong investment option.

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