Amazon (AMZN) Offering Possible 39.86% Return Over the Next 30 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $375.00 short call and a strike $385.00 long call offers a potential 39.86% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $375.00 by expiration. The full premium credit of $2.85 would be kept by the premium seller. The risk of $7.15 would be incurred if the stock rose above the $385.00 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 58.99 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

3-D printing stocks down as H-P eyes market
Thu, 20 Mar 2014 20:22:52 GMT

COLUMN-After the Fed: What investors should do now
Thu, 20 Mar 2014 19:59:39 GMT
Reuters – For active income investors, the next year or so will be a trying time of tough love. While yields are rising, which depresses prices of most income-oriented securities, this presents other opportunities. …

Amazon Prime price shock? Try these cheaper rivals
Thu, 20 Mar 2014 19:17:17 GMT

Amazon Prime price shock? Try these cheaper rivals
Thu, 20 Mar 2014 19:17:17 GMT

Amazon Prime Up 25%, Prime Members Engagement Down 10%
Thu, 20 Mar 2014 19:00:00 GMT

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