Amazon (AMZN) Offering Possible 43.27% Return Over the Next 16 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $300.00 short call and a strike $305.00 long call offers a potential 43.27% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $300.00 by expiration. The full premium credit of $1.51 would be kept by the premium seller. The risk of $3.49 would be incurred if the stock rose above the $305.00 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 45.09 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

Junker in Focus as Report Reveals Luxembourg Tax Deals
Fri, 07 Nov 2014 07:12:41 GMT

Toys ‘R’ Us to open at 5 p.m. on Thanksgiving
Fri, 07 Nov 2014 03:01:50 GMT
Fortune – Retailer unveils initiatives to make the shopping experience smoother during the busy holiday season.

Amazon Unveils Echo Interactive Speaker in New Offering
Thu, 06 Nov 2014 23:34:16 GMT

Einhorn Doesn't Buy the Amazon Story
Thu, 06 Nov 2014 22:41:52 GMT

Regis Philbin playbook: Alibaba
Thu, 06 Nov 2014 22:36:00 GMT

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