Caterpillar (CAT) Offering Possible 61.29% Return Over the Next 20 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $230.00 short call and a strike $235.00 long call offers a potential 61.29% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $230.00 by expiration. The full premium credit of $1.90 would be kept by the premium seller. The risk of $3.10 would be incurred if the stock rose above the $235.00 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 44.29 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

Earnings are beating expectations at a record rate: Morning Brief
Fri, 30 Apr 2021 10:02:29 +0000
Top news and what to watch in the markets on Friday, April 30, 2021.

US STOCKS-Facebook fuels S&P 500 to record high close
Thu, 29 Apr 2021 20:21:55 +0000
The S&P 500 closed at a record high on Thursday, fueled by gains in Facebook following its strong earnings report, while Amazon jumped in extended trade following its quarterly report. Facebook Inc rallied 7.3% to an all-time high after the world's largest social network beat quarterly revenue and profit late on Wednesday.

Caterpillar Earnings Surge, Crushing Views But Shares Reverse
Thu, 29 Apr 2021 20:02:18 +0000
Construction equipment giant Caterpillar reported better-than-expected first-quarter earnings on Thursday.

Senators examine Caterpillar tax probe under former AG Barr’s office
Thu, 29 Apr 2021 19:34:31 +0000
Two Democrat U.S. senators are questioning whether political interference during the Trump Administration hampered a Department of Justice investigation of heavy-equipment manufacturer Caterpillar Inc., according to an announcement this week by the Senate Finance Committee’s chairman. Former Attorney General William Barr, Caterpillar’s former lawyer, ran the department while the investigation was underway. The chair, Senator Ron Wyden, D-Or, and Senator Sheldon Whitehouse, D-RI, wrote to the Department of Justice and the Internal Revenue Service, citing a November Reuters report that the probe of Caterpillar had “stalled” while Barr was AG.

Dow Jones Rallies 240 Points As Nasdaq Reverses Higher; Biden Speech, Earnings In Focus
Thu, 29 Apr 2021 18:55:12 +0000
Stocks rallied Thursday afternoon, following President Joe Biden's Wednesday address to Congress. The Dow Jones industrials led with a 240 point gain.

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