Caterpillar's Options: A Look at What the Big Money is Thinking
Deep-pocketed investors have adopted a bearish approach towards Caterpillar (NYSE: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 19 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 42% leaning bullish and 47% bearish. Among these notable options, 3 are puts, totaling $167,009, and 16 are calls, amounting to $872,311.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $270.0 to $360.0 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 569.4 with a total volume of 2,059.00.
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 $270.0 to $360.0 over the last 30 days.
Caterpillar 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CAT | CALL | TRADE | BULLISH | 01/17/25 | $19.25 | $18.6 | $19.25 | $350.00 | $134.7K | 1.5K | 1 |
| CAT | CALL | SWEEP | NEUTRAL | 01/17/25 | $70.5 | $68.1 | $69.53 | $270.00 | $90.3K | 935 | 0 |
| CAT | CALL | TRADE | BULLISH | 08/02/24 | $11.15 | $10.8 | $11.15 | $325.00 | $82.5K | 238 | 0 |
| CAT | CALL | SWEEP | BEARISH | 07/12/24 | $3.45 | $3.0 | $3.0 | $332.50 | $81.9K | 179 | 1 |
| CAT | CALL | SWEEP | BEARISH | 07/12/24 | $4.05 | $3.85 | $3.9 | $330.00 | $77.2K | 178 | 3 |
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.
In light of the recent options history for Caterpillar, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Current Position of Caterpillar
- Currently trading with a volume of 840,534, the CAT's price is up by 0.92%, now at $330.78.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 27 days.
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.