Check Out What Whales Are Doing With CAT

Investors with significant funds have taken a bearish position in Caterpillar CAT, a development that retail traders should be aware of.

This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in CAT usually indicates foreknowledge of upcoming events.

Today, Benzinga's options scanner identified 10 options transactions for Caterpillar. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 40% being bullish and 60% bearish. Of all the options we discovered, 9 are puts, valued at $554,474, and there was a single call, worth $30,930.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $220.0 to $260.0 for Caterpillar over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Caterpillar stands at 440.0, with a total volume reaching 1,381.00. 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 $220.0 to $260.0, throughout the last 30 days.

Caterpillar Call and Put Volume: 30-Day Overview

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.

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

• Currently trading with a volume of 731,094, the CAT's price is up by 0.81%, now at $249.5.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 62 days.

Expert Opinions 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 $273.0.

• An analyst from HSBC has revised its rating downward to Hold, adjusting the price target to $250.
• Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for Caterpillar, targeting a price of $274.
• Maintaining their stance, an analyst from Tigress Financial continues to hold a Buy rating for Caterpillar, targeting a price of $295.

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.