Caterpillar (CAT) Offering Possible 19.33% 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 $135.00 short put and a strike $125.00 long put offers a potential 19.33% 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 $135.00 by expiration. The full premium credit of $1.62 would be kept by the premium seller. The risk of $8.38 would be incurred if the stock dropped below the $125.00 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 69.48 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

China’s March Trade Data Offered Mixed Signals
Mon, 15 Apr 2019 20:10:02 +0000
China No Longer Seems to Be Biggest Concern for Global Economy(Continued from Prior Part)China’s March trade dataLast week, China released its trade data for March. The country’s exports in US dollar terms rose 14.2%, while its imports fell 7.6%

United Rentals: Slower Earnings Growth in Q1?
Mon, 15 Apr 2019 12:04:37 +0000
United Rentals: Slower Earnings Growth in Q1?Earnings expectationsUnited Rentals (URI) is scheduled to report its first-quarter results on April 17. The company has a strong history of beating analysts’ earnings estimates. The company beat

Notes on Caterpillar, Delta Air Lines, and T. Rowe Price
Sat, 13 Apr 2019 00:55:00 +0000
Although 2019 will likely represent the last year of North America construction tailwinds, relative stability in used-equipment pricing and underlying construction spending suggest little risk to North American construction equipment sales. First quarter 2019 was the company’s first quarter of operating and pre-tax margin expansion in two years.

Caterpillar Announces Officer Changes
Fri, 12 Apr 2019 15:00:00 +0000
DEERFIELD, Ill. , April 12, 2019 /PRNewswire/ — Caterpillar Inc. (NYSE: CAT) announced today officer changes to further support execution of the enterprise strategy, including an emphasis on the company's …

3 Big Stock Charts for Friday: ConocoPhillips, Caterpillar and Morgan Stanley
Fri, 12 Apr 2019 11:36:32 +0000
Stocks were back and forth all day on Thursday, and by the time the closing bell rang, the game ended in a tie. The S&P 500 only mustered an 0.11 point gain yesterday, which wasn't even enough to register a percentage change. Underscoring the lack of conviction behind the action is the fact that yesterday's was the lowest-volume day in months.Caesars Entertainment (NASDAQ:CZR) wasn't fazed by the broad lethargy. Its budding recovery effort was bolstered by whispers that it would soon be putting itself up for sale, sparking a 3.9% advance. At the other end of the spectrum, UnitedHealth Group (NYSE:UNH) fell 4.3% on the heels of growing political uncertainty regarding the future healthcare. Thursday's jaw-dropper was the 10% tumble Weight Watchers (NASDAQ:WTW), now called WW, took after JPMorgan analyst Christina Brathwaite rang the alarm bells about the company even louder than she had been.Headed into the week's final trading session, the stock charts of Morgan Stanley (NYSE:MS), ConocoPhillips (NYSE:COP) and Caterpillar (NYSE:CAT) are worth the closest looks. Here's why, and what's about to happen.InvestorPlace – Stock Market News, Stock Advice & Trading Tips ConocoPhillips (COP)Most oil stocks are doing reasonably well, catching a tailwind driven by the rising price of oil. That dynamic, however, hasn't applied universally. The oil names that aren't being picked up by that rising tide stand out — and do so for the wrong reason. * 7 AI Stocks to Watch with Strong Long-Term Narratives ConocoPhillips is one of those names, and worse, is knocking on the door of a major breakdown. One more poor day could push COP over the edge. Click to Enlarge • The line to watch is right at $65, plotted with a red dashed line on the daily chart. That's where ConocoPhillips has made lows since February, and where it found support before the December drubbing.• There may be even more to that technical floor than readily meets the eye. Plotting Fibonacci retracement lines from the well-established floor at $42 from 2017, the $65.60 area is also a key 38.2% Fibonacci retracement line. Notice the other Fibonacci line at $56.60 has also been a key support level.• It's subtle, and perhaps means little. But, yesterday's small pullback took shape on huge volume. There could be a lot of sellers just waiting in the wings for a triggering event. Caterpillar (CAT)Last year was a tough one for Caterpillar, and by extension, for CAT shareholders. After a fantastic 2017 that served up promise of a major earnings revival, fears of rising steel prices and a tariff war put Caterpillar shares back in a downtrend. From its January-2018 peak near $173 to October's low of $112, CAT stock lost a total of 35% from high to low.Over the course of the past few months, however, we've seen hints that the downtrend has been snapped. The new uptrend isn't fully formed yet, but the lines in the sand are very well defined. Click to Enlarge • The key from here is getting above $142.80, where Caterpillar peaked a couple of times since October's capitulatory low. That resistance level is plotted in yellow on both stock charts.• At the same time, since October's bottom, the bulls have managed to form a clear rising support line, plotted in red on both stock charts.• While a move above $142.80 is still the make-or-break event, the possibility of that happening is bolstered by the golden cross that formed on Thursday. That's where the purple 50-day moving average line crosses above the white 200-day line. Morgan Stanley (MS)When we last looked at Morgan Stanley back on April 5, we were impressed by the breakout thrust that attacked the 200-day moving average line, but were concerned about a gap that had been left behind in the process. It was a perfect setup for the bears to push back.And they did, as would be expected with any fresh encounter with a major moving average line. It's what happened in the meantime and what's about to happen that makes MS worth a refreshed look. Click to Enlarge • Morgan Stanley danced with the 200-day moving average line for a day, but slipped back under it. That slide, however, was just enough to almost close the gap that had been left behind on the April 3.• At the same time, the technical ceiling around $45, marked with a yellow dashed line on both charts, still stands and augments the potential resistance made by the 200-day moving average line.• Though not yet over that one last hump, if Morgan Stanley shares can clear that line, there's little left to hold a rally back.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post 3 Big Stock Charts for Friday: ConocoPhillips, Caterpillar and Morgan Stanley appeared first on InvestorPlace.

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