Caterpillar (CAT) Offering Possible 56.25% Return Over the Next 16 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $215.00 short call and a strike $220.00 long call offers a potential 56.25% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $215.00 by expiration. The full premium credit of $1.80 would be kept by the premium seller. The risk of $3.20 would be incurred if the stock rose above the $220.00 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 46.26 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

Here's What Caterpillar Just Told Us About the Economy (and It's Not Good)
Mon, 02 May 2022 15:30:00 +0000
Amazon and Apple made headlines on Thursday after reporting their first-quarter 2022 earnings — which largely overshadowed Caterpillar's (NYSE: CAT) earnings report. However, industrial bellwether Caterpillar's results can provide insight into the pulse of the global economy, especially considering that over half of Caterpillar's sales come from outside of North America.

Worried About Inflation? Consider These 3 Commodity-Driven Dividend Stocks
Sat, 30 Apr 2022 10:15:00 +0000
Caterpillar (NYSE: CAT), Freeport-McMoRan (NYSE: FCX), and Yamana Gold (NYSE: AUY) are three dividend stocks that may be worth a look now. Daniel Foelber (Caterpillar): Share prices of Caterpillar are under pressure after the company reported disappointing first-quarter results.

Don't Count On CAT Stock Having Nine Lives
Fri, 29 Apr 2022 20:34:10 +0000
When you see overwhelming weakness come into the market, don't expect stocks to always come back.

Stock Market Volatile; Apple, Facebook, Amazon Are Key Earnings, Tesla CEO Elon Musk Buys Twitter: Weekly Review
Fri, 29 Apr 2022 15:59:34 +0000
A market rally attempt is underway, but the major indexes lost ground. Apple and Facebook led key earnings. Elon Musk will buy Twitter.

Caterpillar Announces Virtual 2022 Shareholder Meeting
Fri, 29 Apr 2022 15:20:00 +0000
Caterpillar Inc. (NYSE: CAT) will hold a virtual annual shareholder meeting on Wednesday June 8, 2022 at 8 a.m. (Central Daylight Time).

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