Caterpillar Options Trading: A Deep Dive into Market Sentiment

Deep-pocketed investors have adopted a bearish approach towards Caterpillar CAT, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in CAT usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 44% leaning bullish and 55% bearish. Among these notable options, 4 are puts, totaling $187,573, and 5 are calls, amounting to $647,430.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $410.0 for Caterpillar, spanning the last three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 634.89 with a total volume of 46.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Caterpillar's big money trades within a strike price range of $200.0 to $410.0 over the last 30 days.

Caterpillar Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
CAT CALL TRADE BULLISH 05/17/24 $43.0 $42.4 $43.0 $320.00 $365.5K 1.1K 0
CAT CALL TRADE BEARISH 09/20/24 $107.25 $105.2 $105.2 $260.00 $84.1K 69 8
CAT CALL TRADE NEUTRAL 01/17/25 $166.9 $163.15 $165.16 $200.00 $82.5K 225 0
CAT CALL TRADE BEARISH 09/20/24 $98.0 $96.2 $96.2 $270.00 $67.3K 244 7
CAT PUT SWEEP BULLISH 04/19/24 $13.95 $12.7 $13.12 $370.00 $65.7K 992 31

About Caterpillar

Caterpillar is the premier manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.

In light of the recent options history for Caterpillar, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Caterpillar

  • Trading volume stands at 367,601, with CAT's price down by -0.77%, positioned at $361.12.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 9 days.

What Analysts Are Saying About Caterpillar

In the last month, 2 experts released ratings on this stock with an average target price of $421.5.

  • Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Caterpillar, targeting a price of $435.
  • An analyst from Goldman Sachs persists with their Buy rating on Caterpillar, maintaining a target price of $408.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Caterpillar options trades with real-time alerts from Benzinga Pro.

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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