Amazon (AMZN) Offering Possible 42.86% Return Over the Next 23 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $337.50 short put and a strike $332.50 long put offers a potential 42.86% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $337.50 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 dropped below the $332.50 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 above 80 which suggests that the stock is in overbought territory.

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

AT&T Offers Amazon Fire Phone for ‘$0 Down’
Fri, 29 Aug 2014 10:47:16 GMT
24/7 Wall St. – AT&T has decided to offer the Amazon Fire phone for “$0 down.” But the claim may be a little misleading.

Google’s Drone Delivery Coming to Fruition
Fri, 29 Aug 2014 08:49:15 GMT

[$$] A Brave New World of e-Publishing Confronts the Old
Fri, 29 Aug 2014 04:23:41 GMT

Japan publishers lash out at new Amazon rules
Fri, 29 Aug 2014 03:55:51 GMT

Google Launches Delivery Drones In Video
Fri, 29 Aug 2014 02:22:47 GMT

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