Abercrombie Offering Possible 13.64% Return Over the Next 31 Calendar Days

Abercrombie's most recent trend suggests a bearish bias. One trading opportunity on Abercrombie is a Bear Call Spread using a strike $33.00 short call and a strike $38.00 long call offers a potential 13.64% 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 $33.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $38.00 long call strike price.

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

The RSI indicator is at 30.94 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 Abercrombie

Why 2014 could be even worse for this retailer
Wed, 18 Dec 2013 14:40:03 GMT
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Abercrombie Shares Lose Momentum
Tue, 17 Dec 2013 14:30:04 GMT
Zacks – Shares of Abercrombie touched a new 52-week low of $31.69 yesterday before closing at $31.89.

Online holiday shopping stays strong while stores lag
Mon, 16 Dec 2013 22:39:41 GMT
USA TODAY – Holiday shoppers stay busy online, while physical stores lag

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Motley Fool – Or do their actions really serve the needs of outside investors?

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