Amazon (AMZN) Offering Possible 56.25% Return Over the Next 25 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $357.50 short put and a strike $352.50 long put offers a potential 56.25% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $357.50 by expiration. The full premium credit of $1.80 would be kept by the premium seller. The risk of $3.20 would be incurred if the stock dropped below the $352.50 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 70.75 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 Amazon

Amazon Flexes Muscle Against Blogger Who Thought It ‘Was Nicer Than Average Mega Corporation'
Wed, 23 Jul 2014 19:20:00 GMT

Pandora Seen Holding Tough Vs. Apple Ahead Of Q2
Wed, 23 Jul 2014 18:29:00 GMT

Get Familiar with Amazon's Fire Phone Before Its Thursday Release
Wed, 23 Jul 2014 18:21:30 GMT
TheStreet – The smartphone market stands to get even more crowded on Thursday, with Amazon's release of its new Fire smartphone.

Amazon’s Kindle, Fire, expenses in spotlight with earnings
Wed, 23 Jul 2014 17:56:22 GMT

How Amazon stock has been ‘killing' its rivals
Wed, 23 Jul 2014 17:52:31 GMT

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