Amazon (AMZN) Offering Possible 29.87% Return Over the Next 16 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $322.50 short call and a strike $327.50 long call offers a potential 29.87% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $322.50 by expiration. The full premium credit of $1.15 would be kept by the premium seller. The risk of $3.85 would be incurred if the stock rose above the $327.50 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 37.23 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 Warehouse Workers Want to Be Paid for Waiting in Line
Thu, 02 Oct 2014 22:15:35 GMT
BusinessWeek – The Supreme Court will decide if screenings should be on the clock

Great Cloud Server Reboot of 2014 Is Drama-less (So Far)
Thu, 02 Oct 2014 21:46:24 GMT
The Wall Street Journal – The vulnerability that led some cloud providers to reboot many of their servers last week was a “big deal” that, if exploited, would have allowed hackers to bypass security on virtual machines. …

UPS, FedEx Work to Avoid Another Christmas Shipping Fiasco
Thu, 02 Oct 2014 21:21:50 GMT
MarketWatch – UPS and FedEx are working hard to avoid a Christmas shipping fiasco like the one last year. WSJ's Laura Stevens reports on the News Hub with Sara Murray. Photo: Getty.

Sony Tops Apple, Samsung In Connected TV Devices
Thu, 02 Oct 2014 21:03:00 GMT

In Europe, Big Tech seen as invaders, not innovators
Thu, 02 Oct 2014 20:56:35 GMT

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