Caterpillar (CAT) Offering Possible 31.93% Return Over the Next 6 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $138.00 short put and a strike $133.00 long put offers a potential 31.93% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $138.00 by expiration. The full premium credit of $1.21 would be kept by the premium seller. The risk of $3.79 would be incurred if the stock dropped below the $133.00 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 49.79 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’s Dividend Yield Is Rising Again
Fri, 13 Jul 2018 12:11:11 +0000
Why Did Caterpillar Increase Its Dividend? As of July 11, Caterpillar’s (CAT) dividend yield was 2.4%—the highest in the past three quarters. To calculate the current dividend yield, we have factored in that Caterpillar would be paying the new dividend rate for the remaining quarters in fiscal 2018. In comparison, Boeing (BA), Honeywell (HON), and General Electric (GE) have dividend yields of 2%, 2.06%, and 3.4%, respectively.

Caterpillar’s Free Cash Flows Are Supporting Its Dividend Growth
Fri, 13 Jul 2018 12:11:10 +0000
In the previous part, we discussed Caterpillar’s (CAT) latest dividend and dividend growth. In this part, we’ll analyze how Caterpillar’s free cash flows are supporting the dividend growth.

Caterpillar Increased Its Quarterly Dividend
Fri, 13 Jul 2018 12:11:08 +0000
Why Did Caterpillar Increase Its Dividend? For the fiscal third quarter, Caterpillar (CAT) declared a regular cash dividend for its common equity shareholders. To be eligible for this dividend, investors should hold Caterpillar shares at the end of July 20 in the company’s record book.

Take Advantage of the Selloff in Caterpillar Stock — But Not Yet
Thu, 12 Jul 2018 18:22:02 +0000
Caterpillar Inc. (NYSE:CAT) faces a crossroads. Its recovery from the slump in the energy industry faces a huge potential interruption as a trade war with China escalates. CAT stock has fallen by more than 20% since January partially because of trade war threats.

See what the IHS Markit Score report has to say about Caterpillar Inc.
Thu, 12 Jul 2018 12:00:11 +0000
Caterpillar Inc NYSE:CAT

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