Amazon (AMZN) Offering Possible 36.24% Return Over the Next 9 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 $320.00 long call offers a potential 36.24% return on risk over the next 9 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 $1.33 would be kept by the premium seller. The risk of $3.67 would be incurred if the stock rose above the $320.00 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 below 20 which suggests that the stock is in oversold territory.

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

Daily Report: In Battle Over E-Books, 900 Writers Rally Against Amazon
Fri, 08 Aug 2014 10:55:11 GMT

Q&A: How Amazon Will Spend $2 Billion in India
Fri, 08 Aug 2014 06:34:42 GMT

[$$] Amazon Takes Long View in India
Fri, 08 Aug 2014 05:29:35 GMT

Plot Thickens as 900 Writers Battle Amazon
Fri, 08 Aug 2014 00:58:35 GMT

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Fri, 08 Aug 2014 00:47:28 GMT

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