Check Out What Whales Are Doing With CAT

Investors with a lot of money to spend have taken a bullish 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 19 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 47%, bearish.

Out of all of the special options we uncovered, 12 are puts, for a total amount of $863,688, and 7 are calls, for a total amount of $1,309,814.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $310.0 for Caterpillar, spanning the last three months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Caterpillar's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Caterpillar's substantial trades, within a strike price spectrum from $200.0 to $310.0 over the preceding 30 days.

Caterpillar Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

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.

Present Market Standing of Caterpillar

• Currently trading with a volume of 751,559, the CAT's price is up by 1.62%, now at $295.06.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 35 days.

What The Experts Say On Caterpillar

2 market experts have recently issued ratings for this stock, with a consensus target price of $269.0.

• Consistent in their evaluation, an analyst from Bernstein keeps a Market Perform rating on Caterpillar with a target price of $245.
• An analyst from Stifel has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $293.

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.