Amazon Offering Possible 27.88% Return Over the Next 11 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $365.00 short call and a strike $375.00 long call offers a potential 27.88% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $365.00 by expiration. The full premium credit of $2.18 would be kept by the premium seller. The risk of $7.82 would be incurred if the stock rose above the $375.00 long call strike price.

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

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

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 Amazon

Amazon Aids Games and Graphics in the Cloud
Tue, 05 Nov 2013 23:49:03 GMT
The Wall Street Journal – Amazon keeps adding capabilities to its rentable cloud offerings. The latest move could broaden its customer base still further, including companies like Playcast that are bent on streaming games over …

Twitter Frenzy: Surveillance (11/05)
Tue, 05 Nov 2013 22:40:48 GMT
Bloomberg – Nov. 05 (Bloomberg) — Full episode of “Bloomberg Surveillance.” Guests: William Cohan, David Kirkpatrick, Richard Heitzmann, Arthur Levitt, Timothy Armstrong, and Niraj Shah. (Source: Bloomberg)…

Amazon's First Employee Disses MacKenzie Bezos Review That Disses New Book About Amazon
Tue, 05 Nov 2013 22:23:08 GMT
AllThingsD – He-said, she-said, he-said.

4 Tech Stock Stories Ready for a Tuesday Update
Tue, 05 Nov 2013 21:53:04 GMT
Wall St. Cheat Sheet – All the top business stories of the day in the technology sector: 4 Tech Stock Stories Ready for a Tuesday Update

The Top Reason to Own Wal-Mart Stock
Tue, 05 Nov 2013 21:52:22 GMT
Motley Fool – While Wal-Mart is facing increased competition, there's nevertheless one reason above all to own its stock.

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