Amazon (AMZN) Offering Possible 44.93% Return Over the Next 29 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $335.00 short call and a strike $340.00 long call offers a potential 44.93% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $335.00 by expiration. The full premium credit of $1.55 would be kept by the premium seller. The risk of $3.45 would be incurred if the stock rose above the $340.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Amazon is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Amazon is bearish.

The RSI indicator is at 76.49 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Amazon

Amazon Can't Cage ‘The Goldfinch' Publisher
Mon, 25 Aug 2014 04:40:53 GMT
The Wall Street Journal – Best-selling novel “The Goldfinch” is giving Hachette Book Group a much-needed boost this summer as the publisher weathers the fallout from a lengthy e-book contract dispute with Amazon.

Barnes & Noble Shares Outperform Amazon
Sun, 24 Aug 2014 13:28:53 GMT

4 of the worst financial gifts you can give
Sun, 24 Aug 2014 12:33:00 GMT
USA TODAY – These financial and money-related gifts are generally not such a good idea.

For millions of cord cutters, cable TV fades to black
Sun, 24 Aug 2014 10:15:04 GMT

We're Better TV Viewers When We're Binge Watching
Sat, 23 Aug 2014 14:00:00 GMT

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