Caterpillar Inc (NYSE:CAT) stock is leading the Dow Jones Industrial Average (DJI) higher today, last seen up 8.7% to trade at $880.17, after earlier scoring a record high of $888.38. The heavy equipment company reported better-than-expected first-quarter earnings and revenue, as demand for AI infrastructure and stronger dealer sales boosted results.
CAT is bouncing off support near the $800 level, with its ascending 20-day moving average containing pullbacks earlier this month. The security is also on track to snap a four-day losing streak with its biggest single-day percentage gain since October, and now carries a 54.4% year-over-year lead.
Options traders have been more bearish than usual over the last two months. This is per the equity's 50-day put/call volume ratio of 1.29 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 99% of annual readings.
Echoing this, CAT's Schaeffer's put/call open interest ratio (SOIR) of 1.89 ranks in the top percentile of readings from the last year. An unwinding of these bearish bets could push Caterpillar stock higher still.
So far today, 14,000 calls and 14,000 puts have been traded, which is triple the amount typically seen at this point. Most active is the weekly 5/1 900-strike call, where positions are being opened.
