Deep-pocketed investors have adopted a bearish approach towards Caterpillar CAT, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in CAT usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 12 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 33% leaning bullish and 66% bearish. Among these notable options, 5 are puts, totaling $330,506, and 7 are calls, amounting to $496,326.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $200.0 to $320.0 for Caterpillar over the recent three months.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 1012.78 with a total volume of 1,594.00.
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 $200.0 to $320.0 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 | CALL | SWEEP | BULLISH | 02/16/24 | $320.00 | $177.5K | 1.3K | 13 |
| CAT | CALL | SWEEP | BEARISH | 02/16/24 | $320.00 | $149.1K | 1.3K | 939 |
| CAT | PUT | TRADE | BEARISH | 02/16/24 | $300.00 | $121.5K | 180 | 0 |
| CAT | PUT | SWEEP | BEARISH | 02/16/24 | $300.00 | $88.2K | 180 | 202 |
| CAT | PUT | TRADE | BEARISH | 01/12/24 | $290.00 | $50.0K | 46 | 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.
Caterpillar's Current Market Status
- With a volume of 295,652, the price of CAT is down -0.29% at $292.1.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 41 days.
Professional Analyst Ratings for Caterpillar
A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $293.0.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Caterpillar with a target price of $293.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Caterpillar, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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