How to Make Money on Caterpillar Stock

Posted by OliverPearson 0

cat

Caterpillar is one of the world’s largest producers of heavy construction and mining equipment.  The corporation is engaged in multiple sectors including road construction, timber logging, agricultural sector, mining, and crude oil production.

The bestselling equipment of the company includes trucks, tractors, lift trucks, graders, rollers etc. Also, Caterpillar produces shoes, watches, and smartphones.

The company was founded in 1925. The stock of the company is traded on the New York Stock Exchange (NYSE) under the ticker symbol “CAT”.

 

CaterpillarThe corporation is headquartered in New York, the United Stated. Even after the financial crisis of 2008, the stock of the company gained the pre-crisis level. In 2011, there were several ups and downs of the price. However, the stock is currently showing rise.

The corporation is based in Peoria, the state of Illinois. It employs over 125 thousand people and has more than 480 branches and facilities located in 50 countries around the globe on the five continents.  The net annual profit is over five billion dollars.

How to Analyze Caterpillar Stock?

If you trade binary options, Caterpillar stock as an underlying security is a good choice. Like the Tesla Motors stock, it has low volatility and good historical results giving a good chance to make a profit.

One of the pros of trading CAT is a regular news releases regarding stock buyback. Being the precursor to the stock rise, this is a good sign forinvestors and traders. Caterpillar’s financial reliability ensures that its stockholders get a regular return and pushes the stock up.  

You can follow important corporate news releases on the official website, in the “investors” section.

http://www.caterpillar.com/en/investors.html

Also, you can use MarketWatch, the independent source. You can watch both the stock quotes and news releases on Caterpillar:

http://www.marketwatch.com/investing/stock/cat

CaterpillarKeep track of all news releases on natural disasters in the United States or other countries that can seriously damage the infrastructure being of paramount importance for a country.  This factor makes the company stock and revenue rise as such events offer new opportunities, construction projects etc. The company management can make the stock go up giving promises to the stockholders.

 

 

 

The streamlined production is the keystone of the company success. However, production faults or defects peculiar to any large scale productionmake the company withdraw the products from the market.  Being a negative factor, the news report like that pushes the stock down.

 

The corporation focuses on research and development activities. For instance, Catepillar launched a new line for protective cell and smart phone accessories production and hence pushed its tock up. A trader should constantly keep track of the news like that.

The price of Caterpillar stock is affected by other companies buying equipment from it. Therefore, the word on the street about new project requiring heavy CAT equipment positively impacts the company stock and means that a trader can open an order.

Options on Caterpillar Stock

shares CaterpillarOne of the key advantages of binary options trading is that you make a profit even if the price of Caterpillar stock changes by a pip in the chosen direction during the selected period.

Long-term projections of the price movements are based on the quarterly reports. They contain information on the work done and future plans which is the basis of the fundamental analysis. Acquisitions, changes in the internal policy, new senior managers are the factors affecting the stock quotes.

How to Make a Profit on Caterpillar

To make a profit on Caterpillar stock, I advise you to deal with TopOption. This is one of few brokers providing such an underlying asset as Caterpillar stock. Besides, this broker offers a lot of other underlying assets and flexible terms. In short, this is really a great broker.

After analysis of Caterpillar stock, I browse the website of TopOption and choose an underlying asset, that is, Caterpillar stock and click UP as I expect the price to rise:

cat

I set the the amount of investment (Minimum investment is $10, anybody can afford it) and click TRADE:

cat2

Pay attention that I set the expiry to 2:40 p.m. As it’s 2:32:51 p.m. now, the investment period is 8 minutes.

If the price rises by at least 0.001 during 8 minutes, I will make an 80% profit. And here’s the result:

cat3

As you see, anybody can make a profit on Caterpillar stock! You don’t have to do anything special. You just need to analyze an underlying security, browse the website of TopOption, select the amount of your investment, time of expiry, and your forecast.

Isn’t it profitable to make an 80% return in just 13 minutes?

Leave a Reply

You must be logged in to post a comment.

Recommended for you

How to Make a Profit on McDonald’s Stock?

AllbinaryOptions.today