AAL

Caterpillar Stock Plummeting on Order Backlog Decline

Options volume is running at eight times the intraday average

Digital Content Manager
Oct 31, 2023 at 10:40 AM
facebook X logo linkedin


Caterpillar Inc. (NYSE:CAT) earlier announced better-than-expected third-quarter profits, amid strong demand for high-end construction equipment after infrastructure investments, as well as price hikes and cost controls. A falling order backlog is casting a shadow over these strong results, however, and sparking fears that the company could miss fourth-quarter revenue expectations. 

Last seen down 5.7% at $228.42, Caterpillar stock is today trading at its lowest level since June. Should these losses hold, the security will mark its fourth loss in five sessions, and its biggest single-day percentage drop since March. In the last three months, CAT shed more than 20%.

Options volume is already running at eight times the intraday average volume, with 16,000 calls and 18,000 puts exchanged so far. The popular active contract is the 11/3 225-strike put, with positions opening there, as well as the 230-strike call in the same series that is trailing just behind.

It's worth noting the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.04 sits in the low 15th percentile of annual readings, indicating short-term options traders lean bullish. In other words, an continued unwinding of optimism could create additional headwinds for Caterpillar stock.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.

 

It’s never too late to Master the Market (7)

 
 
 
 

Follow us on X, Follow us on Twitter