Kraft Foods (KRFT) Offering Possible 9.89% Return Over the Next 22 Calendar Days

Kraft Foods's most recent trend suggests a bearish bias. One trading opportunity on Kraft Foods is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 9.89% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $62.50 long call strike price.

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

The RSI indicator is at 48.75 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 Kraft Foods

Market preps for avalanche of earnings, economic data
Fri, 25 Apr 2014 22:51:03 GMT

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Fri, 25 Apr 2014 19:00:00 GMT

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Thu, 24 Apr 2014 21:12:39 GMT

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Thu, 24 Apr 2014 16:21:32 GMT

Coffee Crop Prayers for Rain Met With Threat of a Deluge
Thu, 24 Apr 2014 01:58:42 GMT

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