Amazon (AMZN) Offering Possible 42.86% Return Over the Next 18 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $325.00 short call and a strike $330.00 long call offers a potential 42.86% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $325.00 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $3.50 would be incurred if the stock rose above the $330.00 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 40.25 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

Iranian ecommerce thrives despite obstacles
Wed, 01 Oct 2014 07:50:09 GMT
Financial Times – When brothers Hamid and Saeed Mohammadi founded online retailer Digikala in 2007 they had capital of $20,000, an office in a small apartment in Tehran and a couple of engineers on the payroll. Now the …

[$$] Amazon.com, Disney Back at Peace
Wed, 01 Oct 2014 04:46:48 GMT
The Wall Street Journal – Amazon.com appears to be close to settling a nearly two-month dispute with Walt Disney during which the e-commerce giant stopped offering Disney DVDs for preorder.

Amazon, Disney back at peace
Wed, 01 Oct 2014 03:32:23 GMT

Amazon, Disney appear close to settling dispute over movies – WSJ
Wed, 01 Oct 2014 02:24:12 GMT

Amazon, Disney appear close to settling dispute over movies – WSJ
Wed, 01 Oct 2014 02:12:11 GMT

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