Caterpillar, Inc. (NYSE: CAT) and a Historical Pattern for It 

Tom Gentile

Posted in
Strategy

By: Tom Gentile
August 5th, 2022

2 mins read

When looking at the Money Calendar data one can further filter a stock or ETF to consider by looking in to a sector that is performing well.

Industrials over the past month is one of the better performing sectors. When you look at the Money Calendar list of stocks and ETF’s with patterns that have a start date for today, you will see Caterpillar, Inc. (NYSE: CAT).

They are post earnings, so we don’t have to worry about that event causing any chaos in the management of any option trade.

They are on a bit of a pullback after their earnings were announced, but if you look at their chart you can see it had a nice price run up prior to the release of earnings that it isn’t surprising to see it sell off a bit – one could consider it profit raking if they want.

We will call it opportunity.

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It is a 27-day pattern. It has a 90% accuracy. The avg. profit over this period of days the past 10-years is $4.41 pr 4.41 points.

The price action written about earlier speaks about the run up in to earnings and the pull back since, but the truth of the matter is the catalyst for the trade, whether it be on the stock, or the option is the Money Calendar pattern.

Let’s get to the visuals.

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Option Consideration: Call Debit Spread

The pricing on a Long Call is too pricey so we will highlight just the one option opportunity , which is the Call Debit Spread.

Buy-to-Open an option for CAT and on the same order ticket Sell-to-Open an option for CAT a strike higher than the one bought to open. The goal is to see the stock trade above the price of the sold to open strike for a chance at max profitability.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


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