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 15 uncommon options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 20% bullish and 53%, bearish.
Out of all of the special options we uncovered, 12 are puts, for a total amount of $735,517, and 3 are calls, for a total amount of $100,940.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $310.0 to $375.0 for Caterpillar during the past quarter.
Insights into Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Caterpillar's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Caterpillar's whale activity within a strike price range from $310.0 to $375.0 in the last 30 days.
Caterpillar 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CAT | PUT | SWEEP | BEARISH | 06/21/24 | $1.32 | $1.31 | $1.31 | $330.00 | $133.6K | 7.4K | 1.4K |
| CAT | PUT | SWEEP | NEUTRAL | 06/21/24 | $17.25 | $16.6 | $16.93 | $375.00 | $108.3K | 0 | 64 |
| CAT | PUT | SWEEP | NEUTRAL | 06/21/24 | $17.5 | $16.9 | $17.2 | $375.00 | $78.8K | 0 | 176 |
| CAT | PUT | SWEEP | NEUTRAL | 06/21/24 | $17.6 | $16.9 | $17.18 | $375.00 | $73.8K | 0 | 103 |
| CAT | PUT | SWEEP | BEARISH | 01/16/26 | $22.8 | $22.75 | $22.8 | $310.00 | $70.6K | 217 | 37 |
About Caterpillar
Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial 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.
Caterpillar's Current Market Status
- Trading volume stands at 396,872, with CAT's price down by -0.8%, positioned at $359.83.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 70 days.
What The Experts Say On Caterpillar
A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $350.0.
- An analyst from TD Cowen has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $340.
- An analyst from HSBC persists with their Hold rating on Caterpillar, maintaining a target price of $360.
- An analyst from Stifel has revised its rating downward to Hold, adjusting the price target to $350.
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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