Investors with a lot of money to spend have taken a bearish 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 36% bullish and 47%, bearish.
Out of all of the special options we uncovered, 9 are puts, for a total amount of $495,846, and 10 are calls, for a total amount of $788,888.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $315.0 to $400.0 for Caterpillar during the past quarter.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of Caterpillar stands at 609.88, with a total volume reaching 2,386.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Caterpillar, situated within the strike price corridor from $315.0 to $400.0, throughout the last 30 days.
Caterpillar Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CAT | CALL | TRADE | BEARISH | 05/17/24 | $7.35 | $7.15 | $7.2 | $347.50 | $360.0K | 25 | 567 |
| CAT | CALL | TRADE | BULLISH | 06/20/25 | $50.25 | $48.95 | $49.73 | $340.00 | $99.4K | 351 | 23 |
| CAT | PUT | SWEEP | BEARISH | 05/17/24 | $63.8 | $59.0 | $63.8 | $400.00 | $95.7K | 36 | 0 |
| CAT | PUT | TRADE | BULLISH | 07/19/24 | $20.9 | $18.05 | $18.63 | $350.00 | $83.8K | 1.2K | 2 |
| CAT | CALL | SWEEP | NEUTRAL | 05/24/24 | $20.45 | $19.65 | $19.99 | $330.00 | $76.0K | 5 | 38 |
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
Caterpillar's Current Market Status
- With a volume of 1,760,377, the price of CAT is up 1.95% at $344.58.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 95 days.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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