Cummins Offering Possible 7.53% Return Over the Next 22 Calendar Days

Cummins's most recent trend suggests a bullish bias. One trading opportunity on Cummins is a Bull Put Spread using a strike $140.00 short put and a strike $130.00 long put offers a potential 7.53% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $140.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $9.30 would be incurred if the stock dropped below the $130.00 long put strike price.

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

The RSI indicator is at 75.86 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 Cummins

Cummins recalling 25,013 engines over fire risk
Sat, 01 Mar 2014 18:06:16 GMT

Finally! Nissan updating Titan pickup after 12 years
Fri, 28 Feb 2014 13:00:57 GMT

CUMMINS INC Files SEC form 8-K, Other Events
Thu, 27 Feb 2014 21:00:06 GMT

Cummins, Paccar, and Navistar: Why They Surged
Wed, 26 Feb 2014 20:07:56 GMT

3 Stocks Improving Performance Of The Industrial Goods Sector
Wed, 26 Feb 2014 17:03:00 GMT

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