Caterpillar Unusual Options Activity

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 12 uncommon options trades for Caterpillar.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $1,341,910, and 6 are calls, for a total amount of $283,355.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $300.0 to $370.0 for Caterpillar over the recent three months.

Insights into 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 $300.0 to $370.0 over the preceding 30 days.

Caterpillar Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About Caterpillar

Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial 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.

Where Is Caterpillar Standing Right Now?

• Trading volume stands at 904,435, with CAT's price down by -0.28%, positioned at $343.69.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 70 days.

What Analysts Are Saying About Caterpillar

In the last month, 5 experts released ratings on this stock with an average target price of $343.2.

• An analyst from Evercore ISI Group has decided to maintain their In-Line rating on Caterpillar, which currently sits at a price target of $321.
• Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Caterpillar, targeting a price of $376.
• An analyst from UBS has decided to maintain their Sell rating on Caterpillar, which currently sits at a price target of $285.
• Consistent in their evaluation, an analyst from Barclays keeps a Equal-Weight rating on Caterpillar with a target price of $335.
• In a cautious move, an analyst from Truist Securities downgraded its rating to Buy, setting a price target of $399.

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.