Amazon (AMZN) Offering Possible 47.06% Return Over the Next 10 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $302.50 short call and a strike $307.50 long call offers a potential 47.06% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $302.50 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $3.40 would be incurred if the stock rose above the $307.50 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 53.63 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’s Diaper Deal Spawns New Rival
Thu, 08 Jan 2015 01:00:35 GMT
The Wall Street Journal – 415-765-6124

Jet.com prepares for assault on Amazon
Wed, 07 Jan 2015 23:35:10 GMT

Amazon retaliates against Vermont sales tax law
Wed, 07 Jan 2015 22:47:47 GMT

Business Highlights
Wed, 07 Jan 2015 22:35:29 GMT
AP – ___ Why the US will power the world economy in 2015 The United States is back, and ready to drive global growth in 2015. The U.S. is expected to grow in 2015 at its fastest pace in a decade. The economy …

Ultra HD video surge coming to fuel 4K TV upgrade cycle
Wed, 07 Jan 2015 22:11:00 GMT

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