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Managing Caterpillar Stock Option TradeInvestor's Business Daily
•Business
Business & Economics
62% Informative
Caterpillar ( CAT ) looks like a potential bearish candidate after breaking below the 200-day moving average Wednesday .
A bear call spread involves selling an out-of-the-money call and buying a further call.
The strategy can be profitable if the stock trades lower, sideways.
The spread will achieve the maximum profit if Caterpillar closes below 380 on March 21 .
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