Amazon (AMZN) Offering Possible 40.85% Return Over the Next 32 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 32 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 62.36 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

[$$] Amazon.com Coming to Shanghai's Free-Trade Zone
Wed, 20 Aug 2014 11:17:51 GMT

[$$] I'm Backing Amazon and Authors Should Too
Wed, 20 Aug 2014 04:19:38 GMT

INDIA PRESS-India to be launch pad for Amazon's plan to deliver packages using drones-Economic Times
Wed, 20 Aug 2014 03:28:34 GMT

Amazon, Cloud Rivals Wage Price War In ‘Land Grab'
Tue, 19 Aug 2014 22:33:00 GMT
Investor's Business Daily – Cloud-services providers are unlikely to throttle back their torrid capital spending despite an ongoing price war that took some steam out of Amazon.com's Q2 earnings. Cloud-services leaders Amazon (AMZN), …

Apple-Google Rivalry Moves to Companies as Growth Slows
Tue, 19 Aug 2014 20:06:58 GMT

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