Amazon (AMZN) Offering Possible 47.06% 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 $330.00 short call and a strike $340.00 long call offers a potential 47.06% 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 $330.00 by expiration. The full premium credit of $3.20 would be kept by the premium seller. The risk of $6.80 would be incurred if the stock rose above the $340.00 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 31.86 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

Alibaba Shares To Be Priced For Record Sale
Thu, 18 Sep 2014 08:05:44 GMT

[$$] Amazon Unveils High-End Kindle Reader and Low-Price 6-Inch Tablet
Thu, 18 Sep 2014 06:41:27 GMT
The Wall Street Journal – Amazon introduced a handful of new devices, including a $100 tablet aimed at the masses and a high-end electronic-reader that the company says is the closest e-reading experience to plain paper.

Zalando sets IPO range, valuing it at up to 5.6 bln euros
Thu, 18 Sep 2014 06:23:38 GMT
Reuters – UK Focus – Zalando , Europe's biggest online fashion retailer, priced its initial public offering on Wednesday in a range of 18.00 to 22.50 euros per share, which could value the company at up to 5.6 billion euros …

PRESS DIGEST- New York Times business news – Sept 18
Thu, 18 Sep 2014 05:35:16 GMT
Reuters – The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy. * An expert panel voted overwhelmingly on Wednesday …

Amazon debuts new e-readers
Thu, 18 Sep 2014 05:30:12 GMT
AAP – Amazon keeps rolling out the devices. The largest US e-commerce company is introducing two new e-readers and new styles of its Kindle Fire HD tablet as part of an autumn line-up of Kindle devices. The new and updated devices come on the heels of Amazon's Fire smartphone launch in June and the launch of a Fire set-top box that allows online video streaming to your TV in April. With the new e-readers Amazon is trying to entice users to join its ecosystem of products and services by offering a variety of price points and products.

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