Caterpillar (CAT) Offering Possible 6.84% 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 $200.00 short put and a strike $190.00 long put offers a potential 6.84% 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 $200.00 by expiration. The full premium credit of $0.64 would be kept by the premium seller. The risk of $9.36 would be incurred if the stock dropped below the $190.00 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 60.15 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 Why You Should Hold on to Caterpillar (CAT) Stock Now
Mon, 16 Aug 2021 13:22:01 +0000
Favorable end-market demand, positive movement in earnings estimates, and higher-than-industry dividend yield make Caterpillar (CAT) stock worth retaining in the portfolio.

Caterpillar (NYSE:CAT) is Positioned to Benefit from the Massive Infrastructure Bill
Mon, 16 Aug 2021 10:19:19 +0000
Just days ago, the U.S. Senate passed the infrastructure bill, a fresh tailwind into the companies like Caterpillar Inc. (NYSE:CAT). Today we will examine its return on equity (ROE), as well as the latest developments to gauge how well is the largest maker of construction and mining equipment prepared to benefit from such opportunities.

3 High-Yield Dividend Stocks That Just Went on Sale
Sun, 15 Aug 2021 11:00:00 +0000
Stocks that pay dividends can be a great way to combine reliable returns with long-term upside. With that, we asked some of our contributors which dividend stocks they think are on sale now. Caterpillar (NYSE: CAT), 3M (NYSE: MMM), and American Electric Power (NASDAQ: AEP) caught their attention.

How to invest during economic uncertainty as Delta variant cases spike
Thu, 12 Aug 2021 19:14:51 +0000
The historically bearish month of August is presenting investors with unique challenges, as global economies struggle to reopen amid the surge in COVID-19 Delta variant cases. With return-to-office and back-to-school in flux, investors must navigate a changing macro landscape while handicapping how the Federal Reserve will respond to inflationary pressures and a soft but improving labor market. Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, joins Yahoo Finance's Jared Blikre to break down various investing strategies and market approaches when risks are elevated, as well as how to think about market cycles in conjunction with economic cycles. Jared will also demonstrate how to leverage the power of Yahoo Finance Plus for market technicals, fundamentals and portfolio management. Not a subscriber? Start your free trial to join future webinars live!

Why Caterpillar (CAT) is a Top Stock for the Long-Term
Thu, 12 Aug 2021 13:30:01 +0000
Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Focus List, a top feature of the Zacks Premium portfolio service.

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