Automatic Data (ADP) Offering Possible 11.11% Return Over the Next 40 Calendar Days

Automatic Data's most recent trend suggests a bearish bias. One trading opportunity on Automatic Data is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 11.11% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $80.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Automatic Data 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 Automatic Data is bearish.

The RSI indicator is at 27.9 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 Automatic Data

ADP Research Institute® Reveals Economic Confidence Gap in U.S. Midsized Businesses
Mon, 13 Oct 2014 12:00:00 GMT
PR Newswire – ROSELAND, N.J., Oct. 13, 2014 /PRNewswire/ — A new study released today, by the ADP Research Institute®, a specialized research group within ADP®, a global leader in Human Capital Management (HCM), reveals a gap in confidence for midsized businesses when it comes to the U.S. The ADP Research Institute® defines midsized businesses as those with 50 to 999 employees. According to the National Center for the Middle Market, midsized businesses represent nearly one-third of private sector U.S.

Beware: Spin-Off Efforts May Wreck Corporate Credit
Fri, 10 Oct 2014 16:05:47 GMT
24/7 Wall St. – Standard & Poor's has a real warning: Spin-offs often hurt the credit quality of the parent company that is left behind.

Labor-market worries spawn new ways to look at jobs
Wed, 08 Oct 2014 16:16:51 GMT
MarketWatch – An influx of new indexes to track the employment scene is not entirely a good thing — it reflects persistent worries about how long it’s taken the labor market to recover five years after the Great Recession …

New York State Added 7,840 Private Sector Jobs in September, According to ADP Regional Employment Report(SM)
Wed, 08 Oct 2014 13:01:00 GMT
Marketwired – The State of New York added 7,840 private sector jobs during the month of September, according to the ADP Regional Employment Report which is produced by ADP®, a leading global provider of Human Capital …

California Added 27,160 Private Sector Jobs in September, According to ADP Regional Employment Report(SM)
Wed, 08 Oct 2014 13:01:00 GMT
Marketwired – The State of California added 27,160 private sector jobs during the month of September, according to the ADP Regional Employment Report which is produced by ADP®, a leading global provider of Human Capital …

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