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

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $305.00 short call and a strike $315.00 long call offers a potential 40.85% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $305.00 by expiration. The full premium credit of $2.90 would be kept by the premium seller. The risk of $7.10 would be incurred if the stock rose above the $315.00 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 24.76 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

BlackBerry Classic nixes touchscreen tapping for keypad mashing
Wed, 17 Dec 2014 21:55:00 GMT

Wal-Mart Is Quickly Catching Up To Amazon
Wed, 17 Dec 2014 21:07:54 GMT

IBM says cloud business enjoying “breakthrough year”
Wed, 17 Dec 2014 21:00:00 GMT
Reuters – UK Focus – IBM aims to expand the number of data centres it offers clients around the world by 25 percent to meet fast-rising demand for internet-based services, after what a company executive said has been a “breakthrough …

Retailers lure shoppers with last-minute deals
Wed, 17 Dec 2014 18:49:06 GMT

German Amazon.com Workers Extend Strikes
Wed, 17 Dec 2014 18:48:58 GMT

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