Family Dollar (FDO) Offering Possible 6.38% Return Over the Next 17 Calendar Days

Family Dollar's most recent trend suggests a bearish bias. One trading opportunity on Family Dollar is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 6.38% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $75.00 long call strike price.

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

The RSI indicator is at 46.55 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 Family Dollar

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Wed, 02 Jul 2014 17:48:06 GMT

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Tue, 01 Jul 2014 17:17:24 GMT

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Mon, 30 Jun 2014 14:15:10 GMT

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