Caterpillar's Options: A Look at What the Big Money is Thinking

Investors with a lot of money to spend have taken a bullish stance on Caterpillar CAT.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with CAT, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 18 options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 33%, bearish.

Out of all of the options we uncovered, 17 are puts, for a total amount of $1,057,140, and there was 1 call, for a total amount of $53,400.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $315.0 to $360.0 for Caterpillar over the last 3 months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Caterpillar's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Caterpillar's substantial trades, within a strike price spectrum from $315.0 to $360.0 over the preceding 30 days.

Caterpillar Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
CAT PUT SWEEP BEARISH 07/05/24 $2.58 $2.03 $2.58 $315.00 $112.4K 512 500
CAT PUT TRADE NEUTRAL 09/20/24 $21.25 $20.9 $21.1 $340.00 $86.5K 578 162
CAT PUT TRADE BEARISH 09/20/24 $21.45 $21.25 $21.42 $340.00 $70.6K 578 498
CAT PUT TRADE BULLISH 09/20/24 $21.25 $21.05 $21.09 $340.00 $69.5K 578 598
CAT PUT SWEEP BULLISH 09/20/24 $21.25 $21.05 $21.07 $340.00 $69.5K 578 565

About Caterpillar

Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial 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.

Following our analysis of the options activities associated with Caterpillar, we pivot to a closer look at the company's own performance.

Present Market Standing of Caterpillar

  • Currently trading with a volume of 1,083,748, the CAT's price is down by -0.01%, now at $328.91.
  • RSI readings suggest the stock is currently may be oversold.
  • Anticipated earnings release is in 50 days.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Caterpillar with Benzinga Pro for real-time alerts.

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Posted In: OptionsMarketsBZI-UOA
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