Dollar Tree (DLTR) Offering Possible 13.64% Return Over the Next 24 Calendar Days

Dollar Tree's most recent trend suggests a bearish bias. One trading opportunity on Dollar Tree is a Bear Call Spread using a strike $85.00 short call and a strike $90.00 long call offers a potential 13.64% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $85.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $90.00 long call strike price.

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

The RSI indicator is at 71.21 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 Dollar Tree

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Fri, 20 Mar 2015 13:45:21 GMT

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Viking Global’s Increased Position in Dollar Tree
Thu, 19 Mar 2015 17:05:38 GMT
Market Realist – Viking Global increased its position in Dollar Tree (DLTR) by over $196 million in the stock. It represented 2.32% of the total portfolio in 4Q14.

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