CAT Covered Calls: Premium Income for Caterpillar
Caterpillar is the world's largest construction equipment manufacturer. Cyclical exposure creates moderate IV and reliable premiums.
What CAT shares could pay in covered call premium
Caterpillar is the world's largest construction equipment manufacturer. Cyclical exposure creates moderate IV and reliable premiums.
Covered Call Pro ranks live CAT call options by premium-per-day — strike, expiry, premium, and annualized yield — with illiquid chains filtered out. Run the live screener to see today's numbers.
CAT covered call FAQ
How much premium does a CAT covered call pay?
Premiums change daily with Caterpillar's stock price and implied volatility. The Covered Call Pro screener ranks live CAT strikes by premium-per-day so you can see exactly what your shares could pay right now.
Do I need 100 shares of CAT to sell a covered call?
Yes. One options contract covers 100 shares, so selling one covered call on CAT requires owning at least 100 shares. If you own fewer, the position would not be "covered."
What is the risk of selling covered calls on CAT?
The main trade-off is capped upside: if Caterpillar rises above your strike price by expiration, your shares can be called away at the strike. You keep the premium either way, but you give up gains beyond the strike. You also keep full downside exposure to the stock itself. This page is educational information, not investment advice.
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Educational information only — not investment advice. Options involve risk, including capped upside and full downside exposure to the underlying stock.