Amazon Offering Possible 40.85% Return Over the Next 36 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $390.00 short put and a strike $380.00 long put offers a potential 40.85% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $390.00 by expiration. The full premium credit of $2.90 would be kept by the premium seller. The risk of $7.10 would be incurred if the stock dropped below the $380.00 long put strike price.

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

The RSI indicator is at 51.64 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 Amazon

Death At Sears, Best Buy, JCP Hurts America
Sun, 19 Jan 2014 15:00:00 GMT
TheStreet – Without thriving retailers, cities and the economy are less healthy, vibrant.

Little Regard For Amazon’s Prospects So Far This Year
Sun, 19 Jan 2014 13:54:06 GMT
24/7 Wall St. – Over the course of the last month, shares of Amazon (NASDAQ: AMZN) have risen only 1% which is slightly less than the S&P 500. If Wall St. believed that the huge e-commerce company had a surge in holiday …

Should You Hunt for Investment Opportunities Among Electronics Retailers?
Sun, 19 Jan 2014 13:02:07 GMT
Motley Fool – Consumer electronics retailers look temptingly cheap, but Amazon is a major disruptive force inflicting a lot of damage on competitors.

Can Growth Stocks Stay Hot in 2014?
Sat, 18 Jan 2014 18:54:13 GMT
Motley Fool – 2013 was all about multiple expansion, but in 2014 growth stocks have to prove they're worth the high price investors are paying, and that presents both opportunity and challenges.

The Tiny Compay Keeping Amazon Up at Night
Sat, 18 Jan 2014 16:03:09 GMT
Motley Fool – Mall landlords announce plans for same day delivery.

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