Caterpillar (CAT) Offering Possible 12.11% Return Over the Next 37 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $155.00 short call and a strike $165.00 long call offers a potential 12.11% return on risk over the next 37 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $155.00 by expiration. The full premium credit of $1.08 would be kept by the premium seller. The risk of $8.92 would be incurred if the stock rose above the $165.00 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 47.36 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

Caterpillar Inc. (NYSE:CAT) Passed Our Checks, And It's About To Pay A US$1.03 Dividend
Tue, 14 Jan 2020 09:53:35 +0000
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be…

Red states: Trump country's love affair with Chinese investment
Sun, 12 Jan 2020 11:00:46 +0000
It is late October in Jonesboro, Arkansas, a long way from the White House and a long way from the trade war. To launch the Anhui, China-based company’s 125,000 sq ft facility in Jonesboro, southern businessmen and their new Chinese colleagues formed an awkward line on stage behind a red ribbon, each holding a pair of golden scissors and looking at each other for the cue to make the cut. Local politicians were presented with gifts from Anhui, including a traditional painting of galloping horses — a Chinese metaphor for prosperity and success — while a giant screen played a video of factory workers in China performing a choreographed marching band routine.

Bearish Engulfing Candles Appear on All Indexes
Sat, 11 Jan 2020 06:43:34 +0000
As investors seem to be having second thoughts, we look inside the industrial sector and report on retreating small-cap stocks.

Is Caterpillar Inc. (NYSE:CAT) Potentially Undervalued?
Fri, 10 Jan 2020 11:30:40 +0000
Today we're going to take a look at the well-established Caterpillar Inc. (NYSE:CAT). The company's stock saw a…

Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
Tue, 07 Jan 2020 22:50:10 +0000
Caterpillar (CAT) closed the most recent trading day at $146.38, moving -1.32% from the previous trading session.

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