Investors with a lot of money to spend have taken a bearish stance on Caterpillar (NYSE: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 18 uncommon options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 55%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $360,704, and 14 are calls, for a total amount of $851,386.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $155.0 and $430.0 for Caterpillar, spanning the last three months.
Analyzing 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 $155.0 to $430.0 over the preceding 30 days.
Caterpillar Option Volume And Open Interest Over Last 30 Days
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 | SWEEP | BULLISH | 12/06/24 | $4.0 | $3.6 | $4.0 | $410.00 | $200.8K | 92 | 596 |
| CAT | PUT | SWEEP | BEARISH | 12/20/24 | $14.65 | $14.45 | $14.65 | $420.00 | $183.1K | 197 | 126 |
| CAT | CALL | SWEEP | BULLISH | 02/21/25 | $28.0 | $25.8 | $28.0 | $400.00 | $140.0K | 623 | 0 |
| CAT | CALL | SWEEP | BULLISH | 01/16/26 | $47.8 | $46.65 | $47.8 | $420.00 | $109.9K | 373 | 23 |
| CAT | PUT | SWEEP | BEARISH | 01/17/25 | $18.9 | $16.95 | $18.9 | $420.00 | $75.2K | 378 | 80 |
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.
Caterpillar's Current Market Status
- With a trading volume of 1,961,635, the price of CAT is up by 0.61%, reaching $406.16.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 66 days from now.
What The Experts Say On Caterpillar
In the last month, 4 experts released ratings on this stock with an average target price of $348.75.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Reflecting concerns, an analyst from Evercore ISI Group lowers its rating to Underperform with a new price target of $365. * An analyst from UBS persists with their Sell rating on Caterpillar, maintaining a target price of $295. * An analyst from Baird persists with their Underperform rating on Caterpillar, maintaining a target price of $300. * An analyst from Citigroup has decided to maintain their Buy rating on Caterpillar, which currently sits at a price target of $435.
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.
