Decoding Caterpillar's Options Activity: What's the Big Picture?

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 14 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 21% bullish and 64%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $270,894, and 7 are calls, for a total amount of $375,975.

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 $270.0 to $390.0 for Caterpillar over the last 3 months.

Volume & Open Interest Development

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 $270.0 to $390.0 in the last 30 days.

Caterpillar Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

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.

After a thorough review of the options trading surrounding Caterpillar, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Caterpillar

• Currently trading with a volume of 1,258,607, the CAT's price is up by 1.47%, now at $347.38.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 67 days.

What Analysts Are Saying About Caterpillar

In the last month, 5 experts released ratings on this stock with an average target price of $343.2.

• Consistent in their evaluation, an analyst from Barclays keeps a Equal-Weight rating on Caterpillar with a target price of $335.
• Maintaining their stance, an analyst from UBS continues to hold a Sell rating for Caterpillar, targeting a price of $285.
• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Caterpillar with a target price of $321.
• An analyst from Truist Securities downgraded its action to Buy with a price target of $399.
• An analyst from B of A Securities persists with their Buy rating on Caterpillar, maintaining a target price of $376.

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.