Abercrombie Offering Possible 15.74% Return Over the Next 36 Calendar Days

Abercrombie's most recent trend suggests a bearish bias. One trading opportunity on Abercrombie is a Bear Call Spread using a strike $37.00 short call and a strike $42.00 long call offers a potential 15.74% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $37.00 by expiration. The full premium credit of $0.68 would be kept by the premium seller. The risk of $4.32 would be incurred if the stock rose above the $42.00 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 61.42 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

The Biggest Losers of 2013: J.C. Penney, Sears, Lululemon, and Abercrombie
Sun, 19 Jan 2014 17:16:18 GMT
Motley Fool – Last year was great for the market, but it wasn't great for these stocks. Here's why our analysts nominated J.C. Penney, Sears Holdings, Nuance Communications, lululemon athletica, and Abercrombie & Fitch …

The Worst CEO of 2013: J.C. Penney's Ron Johnson or Abercrombie & Fitch's Mike Jeffries?
Sat, 18 Jan 2014 18:08:40 GMT
Motley Fool – 2013 was a phenomenal year for many investors, but not for these CEOs. Who was the very worst of 2013? Ron Johnson of J.C. Penney? Eddie Lampert of Sears? Jamie Dimon at JPMorgan Chase? Or Mr. Foot-in-His-Mouth …

[$$] The Valuation Gap at Gap
Sat, 18 Jan 2014 05:01:00 GMT
Barrons.com – Gap looks like an excellent fit for value investors. Its shares have underperformed the Standard & Poor's 500 index by 27 percentage points over the past six months, even as the company in 2013 posted …

Will Pretty Little Liars Change the Story for Aeropostale?
Fri, 17 Jan 2014 23:32:48 GMT
Motley Fool – Teen retailer Aeropostale's stock hasn't been too pretty since the summer but a collaboration with a hot TV teen property may change its story.

‘Fast Money' Recap: Still in a Bull Market
Thu, 16 Jan 2014 10:00:00 GMT
TheStreet – The trading panel discussed the financial stocks pushing the market higher.

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