Decoding Caterpillar's Options Activity: What's the Big Picture?

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 9 extraordinary options activities for Caterpillar. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 22% leaning bullish and 55% bearish. Among these notable options, 7 are puts, totaling $426,000, and 2 are calls, amounting to $85,800.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $320.0 and $355.0 for Caterpillar, spanning the last three months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Caterpillar's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Caterpillar's significant trades, within a strike price range of $320.0 to $355.0, over the past month.

Caterpillar Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
CAT PUT TRADE BEARISH 09/20/24 $22.7 $22.1 $22.75 $340.00 $79.6K 463 165
CAT PUT SWEEP BEARISH 09/20/24 $22.65 $22.2 $22.48 $340.00 $79.1K 463 235
CAT PUT TRADE NEUTRAL 09/20/24 $22.6 $22.25 $22.4 $340.00 $78.4K 463 94
CAT PUT TRADE BEARISH 09/20/24 $22.55 $22.1 $22.4 $340.00 $78.4K 463 24
CAT CALL TRADE BULLISH 06/21/24 $4.4 $4.3 $4.4 $335.00 $60.7K 383 2

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.

Present Market Standing of Caterpillar Trading volume stands at 280,883, with CAT's price up by 0.32%, positioned at $328.63. RSI indicators show the stock to be may be approaching oversold. Earnings announcement expected in 55 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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