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 positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, 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 14 options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $59,500, and 13, calls, for a total amount of $627,092.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $270.0 to $390.0 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 $270.0 to $390.0 over the preceding 30 days.
Caterpillar 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | CALL | TRADE | BULLISH | 01/16/26 | $310.00 | $92.2K | 42 | 20 |
| CAT | CALL | TRADE | BULLISH | 01/16/26 | $340.00 | $81.2K | 917 | 25 |
| CAT | CALL | TRADE | BULLISH | 01/16/26 | $340.00 | $72.0K | 917 | 59 |
| CAT | PUT | TRADE | BEARISH | 03/15/24 | $300.00 | $59.5K | 723 | 50 |
| CAT | CALL | SWEEP | NEUTRAL | 01/17/25 | $390.00 | $50.7K | 839 | 70 |
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
- Currently trading with a volume of 982,588, the CAT's price is down by -0.22%, now at $298.77.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 7 days.
Expert Opinions on Caterpillar
1 market experts have recently issued ratings for this stock, with a consensus target price of $270.0.
- An analyst from Morgan Stanley downgraded its action to Equal-Weight with a price target of $270.
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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