Capital One Offering Possible 14.16% Return Over the Next 26 Calendar Days

Capital One's most recent trend suggests a bearish bias. One trading opportunity on Capital One is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 14.16% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $72.50 by expiration. The full premium credit of $0.62 would be kept by the premium seller. The risk of $4.38 would be incurred if the stock rose above the $77.50 long call strike price.

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

The RSI indicator is at 56.46 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

Four-star fund manager picks two new stocks
Mon, 21 Oct 2013 17:59:53 GMT
CNBC – “When you're a long-term value investor like we are at Oakmark, we end up buying things that had been disappointing for others,” Bill Nygren says.

Favorite bank right now is BAC: Nygren
Mon, 21 Oct 2013 16:35:00 GMT
CNBC – Bill Nygren, Oakmark, explains why he favors Bank of America over JPMorgan. JPM is not quite as cheap as BAC,” he says.

Another Way To Look At Banks
Mon, 21 Oct 2013 15:42:22 GMT
Seeking Alpha – When I consider investing, I usually look at sectors, then at individual stocks. And I have a great temptation to pick those lagging in hot sectors, because a rising tide lifts all boats.

COF June 2014 Options Begin Trading
Mon, 21 Oct 2013 14:46:00 GMT
Forbes – Investors in Capital One Financial Corp (NYSE: COF) saw new options begin trading today, for the June 2014 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 243 days until expiration the newly trading […]

Moon-shots for Google and Chipotle Lead Earnings Scorecard
Mon, 21 Oct 2013 12:18:00 GMT
TheStreet – NEW YORK ( TheStreet ) — Last week I provided my buy-and-trade profiles for 19 companies in two posts. On Wednesday I wrote, Goldman Sachs and Google Headline Thursday's Earnings and covered 12 companies; …

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