Amazon Offering Possible 43.88% Return Over the Next 31 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 43.88% return on risk over the next 31 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 $3.05 would be kept by the premium seller. The risk of $6.95 would be incurred if the stock dropped below the $385.00 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 56.19 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

[$$] Lucrative Role as Middleman Puts Amazon in Tough Spot
Thu, 23 Jan 2014 01:10:15 GMT
The Wall Street Journal – The push and pull between Amazon and a third-party seller illustrates conflicting priorities in an increasingly important part of the Internet retailer's business.

EBay dismisses Icahn proposal to spin off Paypal
Thu, 23 Jan 2014 00:50:21 GMT

[$$] Netflix Adds 2.3 Million Streaming U.S. Subs
Thu, 23 Jan 2014 00:20:14 GMT
The Wall Street Journal – Netflix added 2.33 million U.S. streaming subscribers in the fourth quarter, more than it had projected, helped by stronger sales during the holiday season.

Icahn wants eBay to spin off its PayPal business
Wed, 22 Jan 2014 23:06:33 GMT
USA TODAY – Icahn wants eBay to spin off its PayPal payments division

A Wal-Mart Growth Story You Didn’t Know About
Wed, 22 Jan 2014 21:50:03 GMT
Motley Fool – Wal-Mart is often seen as a mature company, but it still has growth opportunities outside of the United States giving growth stories Amazon.com and Yahoo a run for their money.

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