What the Options Market Tells Us About Caterpillar
Deep-pocketed investors have adopted a bullish 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 22 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 45% leaning bullish and 36% bearish. Among these notable options, 14 are puts, totaling $1,288,875, and 8 are calls, amounting to $389,403.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $310.0 and $450.0 for Caterpillar, spanning the last three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Caterpillar options trades today is 723.82 with a total volume of 11,962.00.
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 $310.0 to $450.0 over the last 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 | PUT | SWEEP | NEUTRAL | 11/15/24 | $9.15 | $9.0 | $9.07 | $350.00 | $546.3K | 1.2K | 634 |
| CAT | CALL | TRADE | BULLISH | 03/21/25 | $5.65 | $5.3 | $5.65 | $450.00 | $141.2K | 136 | 250 |
| CAT | PUT | SWEEP | BULLISH | 11/01/24 | $7.55 | $6.85 | $6.85 | $350.00 | $123.3K | 27 | 200 |
| CAT | PUT | SWEEP | NEUTRAL | 11/15/24 | $9.05 | $8.95 | $9.02 | $350.00 | $95.5K | 1.2K | 1.3K |
| CAT | PUT | SWEEP | NEUTRAL | 11/15/24 | $8.8 | $8.75 | $8.79 | $350.00 | $89.7K | 1.2K | 1.5K |
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.
Current Position of Caterpillar
- With a volume of 5,177,212, the price of CAT is down -1.13% at $369.1.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 39 days.
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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.
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