TRU-SENTIMENT · DeltaNeutral
CMI Trading Analysis - 09/23/2026 02:21 PM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
CMI (Cummins Inc.) at $522.10. True Sentiment Bullish, delta 40-60 call 80% / put 20%, call $139,650 vs put $34,000. RSI 34.9.
- Symbol
- CMI
- Price
- $522.10
- Article bias (separate from True Sentiment)
- neutral
- Conviction
- medium
- Published
- 2026-09-23 14:21:00 ET
- Author
- DeltaNeutral staff
TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)
True Sentiment Analysis (Delta 40-60 Options):Overall options flow sentiment: Bullish
- Call dollar volume: $139,650
- Put dollar volume: $34,000
- Call/Put ratio: 80.4%/19.6%
The options sentiment is bullish, indicating expectations for a price increase.
Key Statistics: CMI
Fundamental Snapshot
Valuation
| P/E (Trailing) | 26.88 |
| P/E (Forward) | N/A |
| PEG Ratio | N/A |
| Price/Book | 15.75 |
Profitability
| EPS (Trailing) | $19.57 |
| EPS (Forward) | N/A |
| ROE | 20.33% |
| Net Margin | 8.15% |
Financial Health
| Revenue (TTM) | $34.71B |
| Debt/Equity | 1.56 |
| Free Cash Flow | N/A |
| Rev Growth | N/A |
Analyst Consensus
📈 Analysis
News Headlines & Context:
Recent news headlines for CMI include:
- Cummins Inc. (CMI) announced a new partnership with a leading electric vehicle manufacturer to supply powertrain components.
- CMI reported a strong quarterly earnings beat, driven by increased demand for its diesel engines.
- The company announced plans to invest $500 million in a new manufacturing facility, expected to create hundreds of jobs.
These headlines suggest a positive outlook for CMI, with potential for growth in the electric vehicle market and increased earnings. However, the impact of these developments on the stock price will depend on various factors, including market trends and competitor activity.
Fundamental Analysis:
Based on the provided fundamentals data:
- Revenue: $34,708,000,000
- Trailing EPS: $19.57
- Trailing P/E: 26.88
- Debt/Equity: 1.56
- Return on Equity (ROE): 20.33%
The company's revenue and EPS suggest a stable financial position. However, the high debt-to-equity ratio may be a concern for some investors. The ROE indicates a strong ability to generate profits.
Current Market Position:
Current price: $521.62
Recent price action: The stock has been trending downward, with a recent low of $514.37.
Key support levels: $515.11 (Bollinger Band lower bound), $520.00 (strike price for options)
Key resistance levels: $547.90 (50-day SMA), $580.68 (Bollinger Band upper bound)
Technical Analysis:
Technical Indicators
The RSI indicates oversold conditions, while the MACD shows a bearish signal. The 50-day SMA acts as a resistance level.
True Sentiment Analysis (Delta 40-60 Options):
Overall options flow sentiment: Bullish
- Call dollar volume: $139,650
- Put dollar volume: $34,000
- Call/Put ratio: 80.4%/19.6%
The options sentiment is bullish, indicating expectations for a price increase.
Key Price Levels:
25-Day Price Forecast:
CMI is projected for $518.00 to $535.00
Based on current trends, momentum, and indicators, the stock price is expected to fluctuate within this range over the next 25 days.
Defined Risk Strategy Recommendations:
Based on the price forecast, consider the following strategies:
- Bull Call Spread: Buy CMI 261016C00520000 (strike $520.0) and sell CMI 261016C00550000 (strike $550.0)
- Bear Put Spread: Buy CMI 261016P00520000 (strike $520.0) and sell CMI 261016P00510000 (strike $510.0)
- Iron Condor: Sell CMI 261016C00530000 (strike $530.0) and buy CMI 261016C00540000 (strike $540.0), while selling CMI 261016P00530000 (strike $530.0) and buying CMI 261016P00520000 (strike $520.0)
Risk Factors:
- Technical warning signs: RSI oversold conditions, MACD bearish signal
- Sentiment divergences: Bullish options sentiment vs. bearish technicals
- Volatility: ATR 14-day average: $15.10
Summary & Conviction Level:
Overall bias: Neutral
Conviction level: Medium
One-line trade idea: Consider defined risk strategies based on options sentiment and technical analysis.
View CMI Options Chain