Caterpillar (CAT) Offering Possible 11.36% Return Over the Next 29 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $125.00 short put and a strike $115.00 long put offers a potential 11.36% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $125.00 by expiration. The full premium credit of $1.02 would be kept by the premium seller. The risk of $8.98 would be incurred if the stock dropped below the $115.00 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 above 80 which suggests that the stock is in overbought 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

Dow Jones Today: Oil Slides, Investors Wait on Fed
Tue, 17 Sep 2019 20:23:42 +0000
Nearly as rapidly as oil prices spiked Monday, they violently retreated Tuesday amid talk that Saudi Arabia will be able to restore production from weekend drone strikes faster than was previously expected.Source: rafapress / Shutterstock.com Oil stood in the way of market upside yesterday and the commodity's Tuesday tumble did not provide much in the way of relief, indicating that many market participants are taking a wait-and-see approach to what comes out of the Federal Reserve meeting Wednesday. * 7 Momentum Stocks to Buy On the Dip Even before the rate cut news, the Fed was making headlines today, stepping into the repo market by buying $53.2 billion in securities to ease a sudden spike in short-term interest rates.InvestorPlace – Stock Market News, Stock Advice & Trading Tips"The turmoil in the repo market caused a key benchmark for policy makers — known as the effective fed funds rate — to jump to 2.25%, an increase that, if left unchecked, could have started impacting broader borrowing costs in the economy," according to Bloomberg.Regarding the Fed's plans for interest rates, it appears likely that a rate cut of 25 basis points will be unveiled tomorrow, but after that, the central bank could be on pause for the rest of this year.With that in mind, traders pushed the Nasdaq Composite higher by 0.40% while the S&P 500 rose by 0.26%. The Dow Jones Industrial Average added 0.13%. In late trading, just 12 of the Dow's components were pointed higher and just four of those names were up 1% or more. Trade TalkWhat was surprising about the logy performances notched by stocks today was that President Donald Trump made some encouraging comments about the potential for a trade deal with China. Perhaps it was the broad time frame that the president gave that kept stocks from rallying. Aboard Air Force One heading to California, Trump told members of the media that a trade deal could happen soon or around the time of the 2020 election.That broad timeline wasn't enough to really jolt tariff-sensitive Dow stocks higher. For example, Apple (NASDAQ:AAPL) and Nike (NYSE:NKE) were sporting negligible gains in late trading, and most of the rest of the day's Dow winners were either defensive stocks or companies that are not heavily dependent on China as a source of revenue.Speaking of China, there was some good news on that front for at least one Dow component today. Boeing (NYSE:BA) was the blue chip index's leader, gaining about 1%, after the aerospace giant boosted its China demand forecast.The company said it expects China to purchase 8,090 passenger jets through 2038, up from a prior forecast of 7,690 planes through 2037. Those new orders will also be a boon to Boeing's services business, which is becoming an important driver of top- and bottom-line growth for the firm. Dow OffendersUnfortunately, Tuesday's Dow offenders is larger than we'd like to see. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) can be excused due to the aforementioned drop in oil prices.Home Depot (NYSE:HD) lost about half a percent after Guggenheim analyst Steven Forbes cut his rating on the home improvement retailer to "neutral" from "buy." Forbes said the company's current investment initiatives could pay off over the long run, but over short-term, those spending plans could crimp margins."Bottom line, we find it difficult to see a path to earnings before interest and taxes margin expansion in 2020 as both a) investment spending and b) the associated D&A drag are poised to ramp," said the analyst.In what is likely a case of profit taking after major run high, Caterpillar (NYSE:CAT) traded lower today after entering the day with a gain of more than 15% over the past month. The machinery maker has been highlighted as one of the names that could benefit from higher oil prices, so that factor was at play to the downside. Bottom Line on Dow Jones TodayToday's market action wasn't all that surprising when considering the backdrop riskier assets are contending with. The pullback in oil prices could be a positive because there's always a sweet spot for oil companies and consumers. High gas prices could pinch consumer spending, something that would be a detriment to the broad economy, so today's oil retreat is, in a broader context, a positive.The Fed probably obliges with a rate cut tomorrow, but the devil will be in the details regarding how many more times this year the central bank will ease. If the tone isn't to investors' liking, riskier assets could be roiled.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Dow Jones Today: Oil Slides, Investors Wait on Fed appeared first on InvestorPlace.

Caterpillar Inc. — Moody's assigns A3 rating to Caterpillar senior notes; outlook is positive.
Tue, 17 Sep 2019 15:10:09 +0000
Moody's Investors Service (“Moody's”) assigned an A3 rating to Caterpillar Inc's (CAT) benchmark issuance of senior unsecured notes, proceeds of which will be used to fund discretionary pension contributions to U.S. pension plans. The A3 rating assigned to Caterpillar's note offering reflects the leverage-neutral nature of the transaction given the use of proceed s to fund pension liabilities. In addition, Caterpillar Financial Services Corporation (CFSC) remains a strategically important and prudently managed wholesale and retail finance arm.

Caterpillar and Other Machinery Stocks Could Gain From Higher Oil Prices
Tue, 17 Sep 2019 14:58:00 +0000
Higher energy prices can hurt consumer pocketbooks, affecting the overall economy, but some sectors, such as heavy-machinery makers, benefit from higher oil prices.

Manufacturing – Construction & Mining Outlook: Prospects Dim
Mon, 16 Sep 2019 14:43:02 +0000
Manufacturing – Construction & Mining Outlook: Prospects Dim

Stocks – U.S. Futures Fall After Oil Attacks in Middle East
Mon, 16 Sep 2019 06:44:00 +0000
Investing.com – U.S. futures pointed to a weak opening bell on Monday as oil prices spiked to their highest level since May after drone strikes hit more than half of Saudi Arabia’s oil capacity over the weekend.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.