Amazon (AMZN) Offering Possible 40.85% Return Over the Next 31 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $332.50 short put and a strike $327.50 long put offers a potential 40.85% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $332.50 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock dropped below the $327.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Amazon is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Amazon is bullish.

The RSI indicator is at 77.01 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

‘Fast Money' Recap: Forget the Fed, What About Apple?
Thu, 21 Aug 2014 09:00:00 GMT

Amazon to open up in Shanghai free-trade zone
Thu, 21 Aug 2014 08:27:46 GMT
Financial Times – Amazon, the US ecommerce group, plans to ramp up its business in China by setting up operations in Shanghai's new free-trade zone, allowing it to sell more imports, more cheaply to better compete with …

Amazon Will Need Farsightedness To Succeed Where Others Have Failed In China
Thu, 21 Aug 2014 05:45:00 GMT
Forbes – Amazon’s high-profile signing this week of a memorandum of understanding to set up a logistics warehouse and a cross-border e-commerce platform in Shanghai is an effort to move more deeply into a China e-commerce market that will become the world’s largest in the coming years. Amazon is looking to set […]

[$$] Amazon.com Coming to Shanghai's Free-Trade Zone
Thu, 21 Aug 2014 03:40:41 GMT
The Wall Street Journal – Amazon.com plans to set up operations in Shanghai's new free-trade zone, a major move that will allow it to sell more merchandise from abroad in China and help boost competition against rivals like Alibaba….

Why Apple could be too big for its own good
Wed, 20 Aug 2014 22:07:15 GMT
Talking Numbers – http://l.yimg.com/hv/api/res/1.2/cLKOEebu26aIg_wm0LkR6g–/YXBwaWQ9eWZpbmFuY2U7aD0zMTt3PTQy/http://l.yimg.com/os/en-US/video/video.pd2upload.com/video.tncnbc.com@5bfa63bb-c2da-3986-9c5a-2fdaa1166da2_FULL.jpg

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