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 23 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 34% leaning bullish and 65% bearish. Among these notable options, 5 are puts, totaling $397,928, and 18 are calls, amounting to $932,512.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $280.0 and $380.0 for Caterpillar, spanning the last three months.
Volume & Open Interest Trends
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 $280.0 to $380.0, over the past month.
Caterpillar 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | PUT | SWEEP | BULLISH | 04/05/24 | $357.50 | $157.3K | 1.6K | 496 |
| CAT | PUT | TRADE | BEARISH | 04/19/24 | $340.00 | $99.8K | 3.6K | 415 |
| CAT | CALL | TRADE | BEARISH | 01/17/25 | $280.00 | $98.4K | 1.8K | 0 |
| CAT | CALL | TRADE | BULLISH | 04/19/24 | $340.00 | $91.6K | 2.1K | 35 |
| CAT | CALL | TRADE | BULLISH | 04/05/24 | $345.00 | $77.2K | 259 | 4 |
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.
Current Position of Caterpillar
- Trading volume stands at 768,758, with CAT's price down by -0.15%, positioned at $364.02.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 34 days.
Professional Analyst Ratings for Caterpillar
1 market experts have recently issued ratings for this stock, with a consensus target price of $390.0.
- An analyst from Truist Securities has revised its rating downward to Buy, adjusting the price target to $390.
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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