CAT Caterpillar (CAT) options offer exposure to global infrastructure and construction spending with economic cycle sensitivity and dividend growth characteristics.

CAT is a classic economic bellwether — its earnings reflect global construction, mining, and energy infrastructure demand. Options dynamics track macro economic expectations.

CAT Options Characteristics

Avg Daily Volume

150K+ contracts

Typical Spread

$0.05-0.15

Typical IV Rank

18-35%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$300-400

Correlation

High correlation with industrials (XLI) and economic cycle

Best Strategies for CAT

Covered Calls

Income on infrastructure holding

Bull Put Spreads

Bullish on infrastructure spending

Iron Condors

Range-bound income during stable periods

LEAPS Calls

Long-term infrastructure thesis

Collar Strategy

Protect gains during economic uncertainty

Economic Cycle Barometer

Caterpillar earnings are watched as a leading indicator of global economic health. Construction and mining equipment demand signals broader economic trends.

CAT Options FAQ

Is Caterpillar a good economic indicator for options?

Yes. CAT earnings reflect global construction, mining, and infrastructure demand. Options IV spikes before earnings as markets watch for demand signals. Strong CAT results are bullish for industrials broadly.

How does CAT move on earnings?

CAT typically moves 3-7% on earnings, with dealer inventory levels and order backlog being key metrics. The stock's earnings often set the tone for the industrial sector's reporting season.