Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $82.50 short put and a strike $77.50 long put offers a potential 14.68% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $82.50 by expiration. The full premium credit of $0.64 would be kept by the premium seller. The risk of $4.36 would be incurred if the stock dropped below the $77.50 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 63.71 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
Mark Miller, Senior Research Analyst with the Noble Financial Group: Positive Outlook for Laser Manufacturers Exposed to China, Auto and Microelectronic Markets
Wed, 16 Oct 2013 18:33:00 GMT
Wall Street Transcript – 67 WALL STREET, New York – October 16, 2013 – The Wall Street Transcript has just published its Electronic Components Report offering a timely review of the sector to serious investors and industry executives. …
For Value Investors, 3 Mining Suppliers Worth Digging Into
Wed, 16 Oct 2013 13:52:41 GMT
Seeking Alpha – When everyone is building, make sure you're the one selling them hammers. It's a fundamentally sound proposition to invest in the suppliers that enable a product or process and gain access to a lesser-known …
CAT January 2016 Options Begin Trading
Mon, 14 Oct 2013 14:55:00 GMT
Forbes – Investors in Caterpillar Inc. (NYSE: CAT) saw new options become available today, for the January 2016 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 823 days until expiration the newly available contracts represent a […]
Why Caterpillar Is One Solid Stock You Must Buy
Fri, 11 Oct 2013 18:45:45 GMT
Seeking Alpha – Caterpillar's ( CAT ) stock is currently trading at $85.67, lower from its 52-week high of $99.70. The stock hasn't shown much movement in the last six months as depicted in the chart shown below.
This Heavyweight Is Underplaying Its Most Profitable Business
Fri, 11 Oct 2013 16:32:12 GMT
Motley Fool – Two important things about Caterpillar you probably didn't know.
Also on Market Tamer…
Follow Us on Facebook