Amazon Offering Possible 24.07% Return Over the Next 10 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $395.00 short put and a strike $385.00 long put offers a potential 24.07% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $395.00 by expiration. The full premium credit of $1.94 would be kept by the premium seller. The risk of $8.06 would be incurred if the stock dropped below the $385.00 long put 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

[$$] New Barnes CEO Must Tackle Nook
Thu, 09 Jan 2014 01:00:51 GMT
The Wall Street Journal – Barnes & Noble's decision to elevate its president, Michael Huseby, to the CEO slot answers one question about the book retailer. Still uncertain is how Barnes & Noble will boost sales of its Nook tablet …

Boeing machinists allege unfair labor practices, seek revote
Thu, 09 Jan 2014 00:58:49 GMT
Reuters – Angry Boeing machinists have filed eight unfair labor practice charges with the National Labor Relations Board alleging their union's top leaders manipulated a recent contract vote, and demanding that …

The Biggest Challenge Facing Amazon
Thu, 09 Jan 2014 00:02:54 GMT
Motley Fool – After shipping delays over the holidays, Amazon faces its biggest challenge yet.

9:28 am Amazon.com and CBS (CBS) announce exclusive content licensing agreement for new CBS series Extant
Wed, 08 Jan 2014 23:21:03 GMT
Briefing.com – 9:28 am Amazon.com and CBS (CBS) announce exclusive content licensing agreement for new CBS series Extant

Nissan Provides the Product for Amazon’s Biggest Delivery
Wed, 08 Jan 2014 22:44:08 GMT
Wall St. Cheat Sheet – Amazon and Nissan partnered for a few unusual deliveries.

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