Amazon (AMZN) Offering Possible 23.76% Return Over the Next 12 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $320.00 short call and a strike $330.00 long call offers a potential 23.76% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $320.00 by expiration. The full premium credit of $1.92 would be kept by the premium seller. The risk of $8.08 would be incurred if the stock rose above the $330.00 long call strike price.

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

The RSI indicator is at 24.39 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

[$$] Office Depot's Loss Widens
Tue, 05 Aug 2014 11:28:47 GMT

High-Yield Losses Cost Empik With Amazon Lurking: Poland Credit
Tue, 05 Aug 2014 08:43:13 GMT

[$$] Small Publisher Said It Took 18 Months to Reach Deal With Amazon
Mon, 04 Aug 2014 21:02:38 GMT
The Wall Street Journal – Kensington, a small New York book publisher, said it recently struck a new one-year contract with Amazon—after 18 months of negotiations. The lengthy process hints at the Amazon-Hachette standoff.

The Top Ten Stocks for Aug. 4
Mon, 04 Aug 2014 20:49:49 GMT

Amazon Fans Stray From Script Regarding Bezos's New Phone
Mon, 04 Aug 2014 20:33:00 GMT

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