Caterpillar, Inc. (CAT) Covered Calls

Caterpillar, Inc. covered calls Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through its primary segments: Construction Industries, Resource Industries, and Energy & Transportation. Caterpillar also provides financing and related services through its Financial Products segment and maintains a vast global dealer network to support its heavy machinery.

You can sell covered calls on Caterpillar, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for CAT (prices last updated Fri 4:16 PM ET):

Caterpillar, Inc. (CAT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
774.20 +15.91 772.56 777.00 3.1M 39 355
Covered Calls For Caterpillar, Inc. (CAT)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 775 13.50 763.50 1.5% 68.4%
Mar 20 770 39.95 737.05 4.5% 45.6%
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Core Business and Products

Caterpillar Inc. (CAT) is the world’s premier manufacturer of heavy equipment, power systems, and locomotives. As of early 2026, the company has solidified its transition from a traditional hardware manufacturer into an industrial technology leader, specifically focusing on "Industrial AI" and autonomous worksites. Its operations are organized into three primary segments:

  1. Construction Industries: This segment supports customers using machinery in infrastructure, forestry, and building construction. Products include backhoe loaders, small wheel loaders, and excavators. In 2026, Caterpillar is actively deploying autonomous construction solutions that bring the precision of mining automation to urban and civil engineering projects.
  2. Resource Industries: Focused on the mining and quarrying sectors, this division provides large dozers, draglines, and haul trucks. As of 2026, Caterpillar’s autonomous mining fleet has moved over 11 billion tonnes of material, making it the most proven operator of robotic heavy machinery in the world.
  3. Energy & Transportation: This segment supports customers in oil and gas, power generation, and rail. It produces reciprocating engines, turbines, and locomotives. A key growth driver in 2026 is the "Monarch" project, providing gigawatts of dedicated on-site power and battery storage specifically for hyperscale AI data centers.

Competitive Landscape

The heavy machinery industry is highly competitive, characterized by high capital costs and an increasing focus on digitalization and alternative power sources:

  1. Global Infrastructure Rivals: Caterpillar’s most direct competitors in construction and forestry are John Deere and Japan-based Komatsu. While John Deere is a leader in agricultural integration, Caterpillar maintains a dominant lead in heavy earthmoving and mining applications.
  2. Industrial and Power Competitors: In the power generation and engine markets, the company competes with Cummins and GE Aerospace (specifically in industrial turbines). It also faces competition from Eaton in power management solutions.
  3. Transportation and Specialized Machinery: In the rail and trucking sectors, Caterpillar vies for market share against Westinghouse Air Brake Technologies (Wabtec) and PACCAR.

Strategic Outlook and Innovation

At the start of 2026, Caterpillar is executing a strategic pivot toward "Industrial AI" to solve labor shortages and safety challenges on global jobsites. A highlight of 2026 is the launch of the "Cat AI Assistant," a multimodal system powered by an expanded collaboration with NVIDIA that allows operators and fleet managers to interact with machines using speech, text, and video. This "coach in the cab" initiative aims to reduce operator error and maximize fuel efficiency across mixed fleets. Furthermore, Caterpillar is investing $25 million in a global innovation prize to train the next generation of workers in managing autonomous systems. Strategically, the company is capitalizing on the massive power demands of the AI economy, positioning its natural gas generator sets as the go-to solution for data centers requiring rapid, off-grid power deployment. With a record backlog and a century-long legacy of durability, Caterpillar remains the foundational partner for building the world’s physical and digital infrastructure.