Amazon (AMZN) Offering Possible 32.45% Return Over the Next 19 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $315.00 short call and a strike $325.00 long call offers a potential 32.45% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $315.00 by expiration. The full premium credit of $2.45 would be kept by the premium seller. The risk of $7.55 would be incurred if the stock rose above the $325.00 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 57.29 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

VMware strikes back: “Amazon’s tools promote cloud lock-in”
Tue, 03 Jun 2014 12:05:46 GMT

The Zacks Analyst Blog Highlights: DSW, Citi Trends, American Apparel, Foot Locker and Amazon.com
Tue, 03 Jun 2014 11:22:32 GMT

Cloudera acquires big data encryption specialist Gazzang
Tue, 03 Jun 2014 11:02:49 GMT

[$$] U.S. Goes Back to Publishers on Prices
Tue, 03 Jun 2014 04:46:20 GMT
The Wall Street Journal – The Justice Department went back to the three publishers it sued over Amazon pricing two years ago, asking about any recent pricing discussions they may have had.

Amazon
Mon, 02 Jun 2014 22:51:00 GMT

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