Dow Chemical (DOW) Offering Possible 14.68% Return Over the Next 8 Calendar Days

Dow Chemical's most recent trend suggests a bullish bias. One trading opportunity on Dow Chemical is a Bull Put Spread using a strike $45.50 short put and a strike $40.50 long put offers a potential 14.68% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $45.50 by expiration. The full premium credit of $0.64 would be kept by the premium seller. The risk of $4.36 would be incurred if the stock dropped below the $40.50 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Dow Chemical 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 up which suggests that the medium-term momentum for Dow Chemical is bullish.

The RSI indicator is at 68.02 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 Dow Chemical

Dow Declares Quarterly Dividend of 46 Cents per Share
Thu, 11 Feb 2016 11:45:00 GMT
Business Wire – The Dow Chemical Company has declared a dividend of 46 cents per share, payable April 29, 2016, to shareholders of record on March 31, 2016.

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Wed, 10 Feb 2016 15:48:27 GMT

Gurus Are Buying High-Yield Stocks Like WestRock, Target
Tue, 09 Feb 2016 21:34:59 GMT

What the DuPont-Dow Chemical Merger and Spin-Off Mean for Investors
Tue, 09 Feb 2016 20:00:00 GMT

After a Day Like That, We Might Have to Get Out the Ax
Tue, 09 Feb 2016 11:30:00 GMT

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