Caterpillar Unusual Options Activity For February 09

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 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 19 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $723,236, and 10 are calls, for a total amount of $775,815.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $215.0 to $400.0 for Caterpillar during the past quarter.

Volume & Open Interest Development

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 $215.0 to $400.0 over the preceding 30 days.

Caterpillar Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

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.

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

• Trading volume stands at 1,678,106, with CAT's price up by 0.16%, positioned at $322.5.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 76 days.

What Analysts Are Saying About Caterpillar

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $331.0.

• Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Caterpillar, targeting a price of $385.
• Maintaining their stance, an analyst from Baird continues to hold a Underperform rating for Caterpillar, targeting a price of $257.
• An analyst from Wells Fargo persists with their Equal-Weight rating on Caterpillar, maintaining a target price of $325.
• An analyst from Goldman Sachs persists with their Buy rating on Caterpillar, maintaining a target price of $357.

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.