TRU-SENTIMENT · DeltaNeutral

CMI Trading Analysis - 09/23/2026 03:32 PM — TRU-SENTIMENT

Options chain · Stock chart · Baseline chart

CMI (Cummins Inc.) at $522.76. True Sentiment Bullish, delta 40-60 call 82% / put 18%, call $146,730 vs put $33,080. RSI 35.3.

Symbol: CMI
Price: $522.76
Article bias (separate from True Sentiment): neutral
Conviction: medium
Published: 2026-09-23 15:32:00 ET
Author: DeltaNeutral staff

TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)

True Sentiment Analysis (Delta 40-60 Options):

Overall sentiment: Bullish

Call dollar volume: $146,730
Put dollar volume: $33,080
Call %: 81.6%

The options flow sentiment is bullish, indicating that investors are positioning for a potential upside.

Key Statistics: CMI

$526.13 +0.00%

52-Week Range

$400.72 - $737.76

Market Cap

$218.98B

P/E (TTM)

26.88

PEG Ratio

N/A

Beta

N/A

Next Earnings

N/A

Avg Volume

$958,152

Dividend Yield

N/A

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

None

Target: $N/A

Based on None Analysts

📈 Analysis

News Headlines & Context:

Recent news headlines for Cummins Inc. (CMI) include:

Cummins Inc. announced a new partnership with a leading electric vehicle manufacturer to supply electric powertrains, which could be a positive catalyst for the stock.
The company reported strong quarterly earnings, beating analyst expectations, which could lead to increased investor confidence.
CMI has been investing heavily in its electrification and alternative fuel technologies, which could position the company well for future growth in the industry.

These headlines suggest that CMI is taking steps to adapt to changing market trends and could be poised for future growth.

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 fundamentals indicate a strong revenue base and decent profitability, but a relatively high P/E ratio and significant debt levels are notable concerns.

Current Market Position:

Current price: $522.98

Recent price action:

Daily high: $524.60
Daily low: $514.37
Volume: 934,782.77

Key support and resistance levels:

SMA 50: $599.52
SMA 20: $547.96
SMA 5: $527.99

Technical Analysis:

SMA trends:

SMA 5: $527.99
SMA 20: $547.96
SMA 50: $599.52

Indicators:

RSI (14): 35.34
MACD: -21.85
Bollinger Bands: Middle - $547.96, Upper - $580.54, Lower - $515.39

The stock is currently below its SMA 20 and SMA 50, indicating a bearish trend. RSI is oversold, which could lead to a bounce.

True Sentiment Analysis (Delta 40-60 Options):

Overall sentiment: Bullish

Call dollar volume: $146,730
Put dollar volume: $33,080
Call %: 81.6%

The options flow sentiment is bullish, indicating that investors are positioning for a potential upside.

Key Price Levels:

Support levels:

$514.37 (daily low)
$515.39 (Bollinger Band lower bound)

Resistance levels:

$547.96 (SMA 20)
$580.54 (Bollinger Band upper bound)

25-Day Price Forecast:

Based on current trends and indicators, CMI is projected for $518.23 to $542.11 in 25 days.

This range is based on the current price trajectory, RSI momentum, MACD signals, and recent volatility (ATR).

Defined Risk Strategy Recommendations:

Based on the price forecast and option chain data, here are three recommended 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), sell CMI 261016P00530000 (strike $530.0) and buy CMI 261016P00520000 (strike $520.0)

Risk Factors:

Technical warning signs:

Bearish trend indicated by SMA 20 and SMA 50

Sentiment divergences:

Options flow sentiment is bullish, but technicals are bearish

Volatility and ATR considerations:

ATR (14): $15.10

Summary & Conviction Level:

Overall bias: Neutral

Conviction level: Medium

One-line trade idea: Consider defined risk strategies based on options flow sentiment and technical analysis.

View CMI Options Chain

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice, investment recommendations, or an offer to sell or buy any securities. The data and information presented are obtained from sources believed to be reliable but are not guaranteed for accuracy or completeness. Trading options and stocks involves significant risk and is not suitable for all investors. You should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.