Microchip (MCHP) Offering Possible 13.64% Return Over the Next 14 Calendar Days

Microchip's most recent trend suggests a bearish bias. One trading opportunity on Microchip is a Bear Call Spread using a strike $96.00 short call and a strike $101.00 long call offers a potential 13.64% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $96.00 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 $101.00 long call strike price.

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

The RSI indicator is at 30.37 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 Microchip

Skyworks Lowered Its Forecast Because of the Coronavirus. Why Its Stock Rallied on the News.
Wed, 04 Mar 2020 19:08:00 +0000
(SWKS) (SWKS) is the latest tech company to lower its outlook because of coronavirus’ impact on both global supply chains and demand in China. On Wednesday Skyworks (ticker: SWKS), which makes chips used by (AAPL) (AAPL) and other mobile phone companies, said it now sees revenue of $760 million to $770 million for its fiscal second quarter ending March 27, down from a previous forecast of $800 million to $820 million. The company trimmed its non-GAAP profit outlook to $1.34 a share at the midpoint of the revenue range, from $1.46.

The Dow Fell 786 Points Because Lower Rates Can’t Stop the Coronavirus Outbreak
Tue, 03 Mar 2020 22:19:00 +0000
Stocks tumbled Tuesday amid continuous fears over the spreading coronavirus outside of China, with a rate cut offering little to no support.

Microchip, Qorvo Warn On Coronavirus; AMD Stock Nabs Upgrade
Tue, 03 Mar 2020 21:21:21 +0000
Microchip Technology and Qorvo have joined the parade of tech companies warning about negative impacts from the Covid-19 coronavirus outbreak in China. Meanwhile, AMD stock got an upgrade.

Microchip Updates Revenue Guidance Amid Coronavirus Outbreak
Tue, 03 Mar 2020 21:06:09 +0000
Microchip's (MCHP) updated fourth-quarter fiscal 2020 guidance reflects the impact of coronavirus outbreak in China.

Microchip issues employee travel ban, updates coronavirus financial impact
Mon, 02 Mar 2020 23:49:07 +0000
While none of the semiconductor manufacturing company’s more than 18,000 employees or family members have tested positive for the coronavirus, Microchip's CEO said the company is taking steps to limit exposure.

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