This Is What Whales Are Betting On Caterpillar

This Is What Whales Are Betting On Caterpillar

 

Someone with a lot of money to spend has taken a bullish stance on Caterpillar CAT.

And retail traders should know.

We noticed this today when the big position 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.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 32 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 53% bullish and 46%, bearish.

Out of all of the special options we uncovered, 21 are puts, for a total amount of $1,378,387, and 11 are calls, for a total amount of $536,152.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $165.0 to $240.0 for Caterpillar over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 1418.76 with a total volume of 3,653.00.

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 $165.0 to $240.0 over the last 30 days.

Caterpillar Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
CAT PUT TRADE NEUTRAL 06/16/23 $180.00 $461.9K 804 310
CAT CALL SWEEP BULLISH 02/17/23 $200.00 $147.2K 201 100
CAT PUT SWEEP BEARISH 01/19/24 $195.00 $133.5K 121 50
CAT PUT TRADE BEARISH 01/19/24 $200.00 $68.1K 494 60
CAT PUT TRADE NEUTRAL 01/19/24 $200.00 $56.8K 494 20

Where Is Caterpillar Standing Right Now?

  • With a volume of 1,849,284, the price of CAT is up 1.46% at $196.83.
  • RSI indicators hint that the underlying stock may be overbought.
  • Next earnings are expected to be released in 76 days.

What The Experts Say On Caterpillar:

  • Credit Suisse has decided to maintain their Outperform rating on Caterpillar, which currently sits at a price target of $236.
  • UBS has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $225.
  • Bernstein downgraded its action to Market Perform with a price target of $195
  • Morgan Stanley has decided to maintain their Underweight rating on Caterpillar, which currently sits at a price target of $142.
  • Wells Fargo has decided to maintain their Equal-Weight rating on Caterpillar, which currently sits at a price target of $205.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Caterpillar, Benzinga Pro gives you real-time options trades alerts.

Posted In: BZI-UOAOptionsMarkets