Amazon (AMZN) Offering Possible 50.38% Return Over the Next 32 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 $335.00 long call offers a potential 50.38% return on risk over the next 32 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 $3.35 would be kept by the premium seller. The risk of $6.65 would be incurred if the stock rose above the $335.00 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 32.34 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

[$$] A Price War Erupts in Cloud Services
Wed, 16 Apr 2014 01:09:03 GMT
The Wall Street Journal – Amazon.com, Microsoft and Google are battling over the future of corporate computing, and companies that use their services are reaping the benefits.

Stocks to Watch Now: Amazon.com and Berkshire Hathaway
Tue, 15 Apr 2014 23:42:28 GMT

BGR's Geller says Amazon's phone is a ‘gimmick'
Tue, 15 Apr 2014 22:48:45 GMT

Amazon's Dash Scanning Device Wins Early Kudos
Tue, 15 Apr 2014 22:25:03 GMT

Would You Quit Your Job for an Offer Like This?
Tue, 15 Apr 2014 22:02:44 GMT

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