Dollar Tree Offering Possible 8.7% Return Over the Next 31 Calendar Days

Dollar Tree's most recent trend suggests a bearish bias. One trading opportunity on Dollar Tree is a Bear Call Spread using a strike $55.00 short call and a strike $60.00 long call offers a potential 8.7% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $55.00 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $60.00 long call strike price.

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

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

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LATEST NEWS for Dollar Tree

Which Discount Retailer has the Best Business Model?
Wed, 22 Jan 2014 18:25:25 GMT
Motley Fool – Wal-Mart and Target have the lowest gross margins, while Big Lots and Dollar Tree have the highest. Is close-out retail the better business model?

Can This Dollar Store Turn on a Dime?
Wed, 22 Jan 2014 17:16:11 GMT
Motley Fool – It's been a difficult year for Family Dollar, as it has underperformed Dollar General and Dollar Tree. Can it turn its performance around?

Analysts' Actions: DLTR JNPR ORCL RHT VZ
Wed, 22 Jan 2014 13:28:00 GMT
TheStreet – Here are today's top research calls.

Dollar Tree Initiated at Neutral
Tue, 21 Jan 2014 23:25:03 GMT
Zacks – We have initiated coverage on Dollar Tree Inc. with a Neutral recommendation and a target price of $57 per share.

Dollar Tree: Worth 54 Ones?
Tue, 21 Jan 2014 09:25:16 GMT
Seeking Alpha – Introduction Dollar Tree, Inc. ( DLTR ), one of the group of “Dollar stores,” is a retail business that offers inexpensive merchandise, virtually all of it priced at $1 – and up to C$1.25 in …

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