Spotlight on Caterpillar: Analyzing the Surge in Options Activity

High-rolling investors have positioned themselves bullish on Caterpillar CAT, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in CAT often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 23 options trades for Caterpillar. This is not a typical pattern.

The sentiment among these major traders is split, with 60% bullish and 39% bearish. Among all the options we identified, there was one put, amounting to $25,250, and 22 calls, totaling $950,067.

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 $340.0 to $370.0 for Caterpillar over the last 3 months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Caterpillar's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Caterpillar's significant trades, within a strike price range of $340.0 to $370.0, over the past month.

Caterpillar 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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.

Having examined the options trading patterns of Caterpillar, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Caterpillar

• With a trading volume of 410,873, the price of CAT is down by -0.61%, reaching $349.75.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 37 days from now.

Expert Opinions on Caterpillar

In the last month, 2 experts released ratings on this stock with an average target price of $364.0.

• Reflecting concerns, an analyst from Evercore ISI Group lowers its rating to In-Line with a new price target of $338.
• In a cautious move, an analyst from Truist Securities downgraded its rating to Buy, setting a price target of $390.

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.