Amazon (AMZN) Offering Possible 50.38% Return Over the Next 33 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 33 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 28.08 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 CEO Jeff Bezos Is the Everything Man
Tue, 15 Apr 2014 13:28:00 GMT

Will International Business Machines (IBM) Beat Q1 Earnings?
Tue, 15 Apr 2014 13:20:06 GMT
Zacks – International Business Machines is set to report fiscal first-quarter 2014 results on Apr 16.

Pre-Market: Amazon Says No to Bitcoin, Yes to Expanded Payment Options; Global Markets Move Lower
Tue, 15 Apr 2014 13:16:00 GMT

Why Amazon will launch a smartphone to take on Apple and Samsung
Tue, 15 Apr 2014 13:00:14 GMT

Amazon’s New 3D Smartphone Could Disrupt These Businesses
Tue, 15 Apr 2014 12:42:05 GMT

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