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 18 uncommon options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.
Out of all of the special options we uncovered, 8 are puts, for a total amount of $562,101, and 10 are calls, for a total amount of $426,307.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $250.0 to $300.0 for Caterpillar during the past quarter.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Caterpillar's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Caterpillar's significant trades, within a strike price range of $250.0 to $300.0, over the past month.
Caterpillar Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | PUT | SWEEP | BEARISH | 02/16/24 | $290.00 | $162.0K | 473 | 275 |
| CAT | PUT | TRADE | BEARISH | 01/19/24 | $280.00 | $136.4K | 1.2K | 1 |
| CAT | CALL | SWEEP | BULLISH | 02/16/24 | $250.00 | $78.2K | 826 | 20 |
| CAT | CALL | TRADE | BEARISH | 05/17/24 | $260.00 | $72.9K | 2.0K | 0 |
| CAT | CALL | TRADE | NEUTRAL | 12/29/23 | $272.50 | $59.7K | 217 | 0 |
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.
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 1,760,370, the CAT's price is down by -1.5%, now at $280.9.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 46 days.
What The Experts Say On Caterpillar
In the last month, 1 experts released ratings on this stock with an average target price of $250.0.
- An analyst from HSBC has revised its rating downward to Hold, adjusting the price target to $250.
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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