Someone with a lot of money to spend has taken a bullish stance on Caterpillar (NYSE:CAT).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with CAT, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 11 options trades for Caterpillar.
This isn't normal.
The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $34,875, and 10, calls, for a total amount of $737,314..
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $190.0 to $250.0 for Caterpillar over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Caterpillar's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Caterpillar's whale trades within a strike price range from $190.0 to $250.0 in the last 30 days.
Caterpillar Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CAT | CALL | TRADE | BULLISH | 03/11/22 | $210.00 | $119.1K | 1.9K | 383 |
| CAT | CALL | SWEEP | BEARISH | 03/11/22 | $210.00 | $98.0K | 1.9K | 174 |
| CAT | CALL | SWEEP | BULLISH | 03/11/22 | $210.00 | $92.1K | 1.9K | 907 |
| CAT | CALL | SWEEP | BULLISH | 07/15/22 | $250.00 | $85.9K | 658 | 151 |
| CAT | CALL | SWEEP | BULLISH | 03/18/22 | $200.00 | $76.3K | 5.0K | 50 |
Where Is Caterpillar Standing Right Now?
- With a volume of 331,119, the price of CAT is up 1.48% at $214.92.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 48 days.
What The Experts Say On Caterpillar:
- Jefferies upgraded its action to Buy with a price target of $260
- Wells Fargo downgraded its action to Equal-Weight with a price target of $231
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 are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
