Amazon (AMZN) Offering Possible 35.14% Return Over the Next 25 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $300.00 short call and a strike $305.00 long call offers a potential 35.14% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $300.00 by expiration. The full premium credit of $1.30 would be kept by the premium seller. The risk of $3.70 would be incurred if the stock rose above the $305.00 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 31.49 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

Alibaba vs Amazon: 3rd Party Hosting Wins, Deutsche Says $112
Wed, 29 Oct 2014 04:57:00 GMT

Kindle Voyage Review: Amazon’s Luxury E-reader Offers No-Distraction Reading
Wed, 29 Oct 2014 04:34:11 GMT
The Wall Street Journal – Review : Amazon’s Kindle Voyage, with its high-resolution screen, slim feel and $199 price tag, offers a deluxe reading experience and no distractions.

Amazon Hiring CIOs to ‘Shake Hands with IT'
Wed, 29 Oct 2014 01:33:20 GMT

Quinn touts job news ahead of governor election
Wed, 29 Oct 2014 00:22:35 GMT

Alibaba, MercadoLibre Basing Ahead Of Quarterly Reports
Tue, 28 Oct 2014 22:39:00 GMT

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