Capital One (COF) Offering Possible 18.3% Return Over the Next 29 Calendar Days

Capital One's most recent trend suggests a bullish bias. One trading opportunity on Capital One is a Bull Put Spread using a strike $105.00 short put and a strike $97.50 long put offers a potential 18.3% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $105.00 by expiration. The full premium credit of $1.16 would be kept by the premium seller. The risk of $6.34 would be incurred if the stock dropped below the $97.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Capital One is bullish and the probability of a rise 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 Capital One is bullish.

The RSI indicator is at 78.72 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 Capital One

Seeking Safe Income? Preferreds Are Worth a Look as Rates Rise.
Tue, 19 Jan 2021 18:17:00 +0000
These stocks offer solid yields with less price risk than many bonds. Another play for income investors: preferreds issued by mortgage REITs.

SVB Financial (SIVB) to Report Q4 Earnings: What's in Store?
Tue, 19 Jan 2021 14:54:02 +0000
Despite near-zero rates, SVB Financial (SIVB) is likely to have recorded a modest rise in interest income in the fourth quarter of 2020.

Muted Loan Growth, Low Rates to Hurt Zions' (ZION) Q4 Earnings
Mon, 18 Jan 2021 15:38:03 +0000
Zions (ZION) is expected to have witnessed a decline in interest income in the fourth quarter of 2020, owing to muted growth in loans along with near-zero interest rates.

Capital One Fined $390M For Violating Bank Secrecy Act
Sun, 17 Jan 2021 10:37:07 +0000
Capital One has received a $390 million penalty from the Financial Crimes Enforcement Network (FinCEN) for engaging in both “willful and negligent violations of the Bank Secrecy Act (BSA) and its implementing regulations.” Capital One (COF) admitted that it had deliberately failed to implement and maintain an effective Anti-Money Laundering program, with it also not reporting thousands of suspicious currency transactions. The violations are believed to have occurred from at least 2008 through 2014, and relate to Capital One’s Check Cashing Group. Capital One also acknowledged that it failed to report suspicious transactions by convicted money launderer, Domenick Pucillo, an associate of the Genovese organized crime family. Despite being informed about Pucillo’s association with criminal activity in 2013, Capital One continued to process over 20,000 transactions valued at approximately $160 million. FinCEN’s Director, Kenneth Blanco, called the violations “egregious,” adding that Capital One’s behavior “puts our nation and our people at risk” by depriving law enforcement of this information. (See COF stock analysis on TipRanks) RBC Capital analyst Jon Arfstrom reiterated his Hold rating on COF three days ago and set a price target of $120. (7% upside potential). Capital One will report earnings on January 26 and Arfstrom expects first quarter earnings per share (EPS) to come in at around $5.07. Consensus among analysts is a Strong Buy based on 12 Buys and 2 Holds. The average price target of $115.31 suggests that COF shares are almost fully priced, with minimal upside potential of around 2% over the next 12 months. COF scores a 9 out of 10 on Tipranks’ Smart Score rating, indicating that it has a strong chance of beating market expectations. Related News: GM to Invest Nearly $800M to Create Canada’s First Large-Scale EV Manufacturing Plant PNC Financial Surpasses 4Q Street Estimates, Shares Decline Wells Fargo Slips 8% On Weaker-Than-Expected 4Q Revenues More recent articles from Smarter Analyst: GM to Invest Nearly $800M to Create Canada’s First Large-Scale EV Manufacturing Plant PNC Financial Surpasses 4Q Street Estimates, Shares Decline Wells Fargo Slips 8% On Weaker-Than-Expected 4Q Revenues JPMorgan's 4Q Profit Beats Analysts' Estimates

Credit card firm Capital One fined for violating U.S. anti-money laundering law
Sat, 16 Jan 2021 00:33:23 +0000
Credit card firm Capital One Financial Corp has been fined $390 million for engaging in what the U.S. government called willful and negligent violations of the Bank Secrecy Act, an anti-money laundering law, a Treasury Department bureau said on Friday. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) said in a statement that Capital One admitted to willfully failing to implement and maintain an effective program to guard against money laundering as required by law.

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