Amazon (AMZN) Offering Possible 38.89% Return Over the Next 4 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $765.00 short call and a strike $770.00 long call offers a potential 38.89% return on risk over the next 4 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $765.00 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 $770.00 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 51.81 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

5 Things You Must Know Before the Market Opens Monday
Mon, 12 Sep 2016 09:59:00 GMT

Amazon and Pandora set to launch new music streaming services – NY Times
Mon, 12 Sep 2016 04:39:51 GMT

PRESS DIGEST- New York Times business news – Sept 12
Mon, 12 Sep 2016 04:35:16 GMT

Amazon and Pandora set to launch new music streaming services: NY Times
Mon, 12 Sep 2016 01:12:12 GMT

Amazon and Pandora set to launch new music streaming services: NY Times
Mon, 12 Sep 2016 01:12:12 GMT

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