Looking At Caterpillar's Recent Unusual Options Activity

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 9 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 55%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $279,705, and 5 are calls, for a total amount of $174,101.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $340.0 and $420.0 for Caterpillar, spanning the last three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 772.38 with a total volume of 627.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Caterpillar's big money trades within a strike price range of $340.0 to $420.0 over the last 30 days.

Caterpillar Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Caterpillar

Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its reporting segments are: construction industries (40% sales/47% operating profit, or OP), resource industries (20% sales/19% OP), and energy & transportation (40% sales/34% OP). Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has global reach (46% US sales/54% ex-US). Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of 156 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.

Present Market Standing of Caterpillar

• With a trading volume of 483,092, the price of CAT is up by 0.81%, reaching $378.84.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 47 days from now.

What Analysts Are Saying About Caterpillar

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $483.3333333333333.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Caterpillar, targeting a price of $460. * Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Caterpillar, targeting a price of $475. * An analyst from JP Morgan persists with their Overweight rating on Caterpillar, maintaining a target price of $515.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Caterpillar with Benzinga Pro for real-time alerts.