Amazon (AMZN) Offering Possible 38.89% Return Over the Next 24 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $297.50 short call and a strike $302.50 long call offers a potential 38.89% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $297.50 by expiration. The full premium credit of $1.40 would be kept by the premium seller. The risk of $3.60 would be incurred if the stock rose above the $302.50 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 34.23 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

Countdown to Black Friday Begins: Amazon Launching More than 15,000 Lightning Deals This Holiday
Thu, 30 Oct 2014 07:02:00 GMT
Business Wire – – Let the countdown begin! November 1 is the official start of the holiday shopping season on Amazon, as the company kicks off Black Friday early with its Countdown to Black Friday Deals Week event.

Postal Service expects 14% surge in holiday deliveries
Thu, 30 Oct 2014 00:46:59 GMT

Alibaba's U.S. Startup Stakes Offer Strategy Clues
Wed, 29 Oct 2014 21:07:00 GMT

Alibaba Faces Hurdles Gaining In U.S. Market
Wed, 29 Oct 2014 20:57:00 GMT

QE Finally Ends
Wed, 29 Oct 2014 20:56:20 GMT

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