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 11 uncommon options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 54% bullish and 45%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $269,593, and 6 are calls, for a total amount of $258,887.
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 $240.0 and $270.0 for Caterpillar, spanning the last three months.
Insights into Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 1118.75 with a total volume of 1,312.00.
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 $240.0 to $270.0 over the last 30 days.
Caterpillar 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | PUT | TRADE | BULLISH | 02/16/24 | $270.00 | $65.8K | 418 | 320 |
| CAT | PUT | TRADE | BULLISH | 02/16/24 | $270.00 | $65.8K | 418 | 278 |
| CAT | PUT | TRADE | BEARISH | 02/16/24 | $270.00 | $54.5K | 418 | 35 |
| CAT | CALL | TRADE | BULLISH | 02/16/24 | $240.00 | $53.7K | 332 | 40 |
| CAT | CALL | TRADE | NEUTRAL | 02/16/24 | $240.00 | $52.8K | 332 | 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.
Following our analysis of the options activities associated with Caterpillar, we pivot to a closer look at the company's own performance.
Present Market Standing of Caterpillar
- With a trading volume of 767,472, the price of CAT is up by 0.3%, reaching $260.29.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 50 days from now.
What Analysts Are Saying About Caterpillar
In the last month, 1 experts released ratings on this stock with an average target price of $250.0.
- In a cautious move, an analyst from HSBC downgraded its rating to Hold, setting a price target of $250.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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