Amazon (AMZN) Offering Possible 36.99% Return Over the Next 8 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $295.00 short call and a strike $300.00 long call offers a potential 36.99% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $295.00 by expiration. The full premium credit of $1.35 would be kept by the premium seller. The risk of $3.65 would be incurred if the stock rose above the $300.00 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 30.4 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

Forrester sees mobile e-commerce sales topping $100B this year, Re/code says
Mon, 12 May 2014 11:44:02 GMT

Apple tries to lift online sales by cutting refund times in half
Mon, 12 May 2014 11:40:37 GMT

Business Take: Will Anyone Buy an Amazon Phone?
Mon, 12 May 2014 11:06:00 GMT

Do You Know What's Going in Your Amazon Shopping Cart?
Mon, 12 May 2014 05:38:58 GMT
The Wall Street Journal – A system of pooling supposedly identical merchandise at Amazon's warehouses provides flexibility for faster shipping. But in some cases it has led to mix-ups between counterfeit and authentic products….

Asia Private Equity Weekly News, May 12, 2014
Mon, 12 May 2014 05:09:59 GMT
Reuters – UK Focus – News and developments in Asia private equity from Reuters News for the week ending May 9. MAY 9 BREAKINGVIEWS – ALIBABA Group Holding's secret weapon is its payment division. Yet Alipay isn't part of the …

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