Amazon (AMZN) Offering Possible 25% Return Over the Next 16 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $342.50 short put and a strike $337.50 long put offers a potential 25% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $342.50 by expiration. The full premium credit of $1.00 would be kept by the premium seller. The risk of $4.00 would be incurred if the stock dropped below the $337.50 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 67.62 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

[$$] U.S. Mail Delivers Amazon Groceries in San Francisco
Fri, 05 Sep 2014 11:41:20 GMT
The Wall Street Journal – Amazon and the U.S. Postal Service have launched a grocery-delivery experiment in San Francisco. The Postal Service has aggressively chased a bigger piece of the e-commerce pie.

Amazon, U.S. mail test grocery deliveries around San Francisco
Fri, 05 Sep 2014 02:43:36 GMT

Ambarella Chips For GoPro Cameras Help Spur Q2 Beat
Thu, 04 Sep 2014 22:52:00 GMT

Amazon.com Releases KDP Kids, a Self-Publishing Program
Thu, 04 Sep 2014 22:00:07 GMT

Google to Pay $19M to Settle FTC App-Billing Claims
Thu, 04 Sep 2014 21:43:15 GMT

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