Amazon (AMZN) Offering Possible 53.85% Return Over the Next 8 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $667.50 short call and a strike $672.50 long call offers a potential 53.85% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $667.50 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $3.25 would be incurred if the stock rose above the $672.50 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 50.63 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

Prime Now in Chicago Gets Even Better: Superfast Delivery from Your Favorite Local Stores
Thu, 10 Dec 2015 12:00:00 GMT
Business Wire – Amazon.com, Inc. today announced its Prime Now service, the company’s one-hour delivery service, will offer superfast delivery from local stores in Chicago in addition to the tens of thousands of items offered by Amazon.

Inexpensive Tech Gifts for Bookworms
Thu, 10 Dec 2015 11:30:01 GMT

Just in Time for the Holidays: Prime Now Adds 4,000 New Items Available for One-Hour Delivery
Thu, 10 Dec 2015 05:01:00 GMT
Business Wire – Amazon.com today announced that it has added more than 4,000 items to its Prime Now service just in time for the holidays. Whether it’s a big-screen television, top toys and gift-giving items or supplies for yuletide baking, Prime Now has everything customers need to skip a trip to the store this holiday season.

Amazon.com Inc. Prime Video Gets an Upgrade and Keurig Green Mountain Inc Joins Global Coffee Portfolio
Wed, 09 Dec 2015 23:46:00 GMT

How Hulu and Amazon went after Netflix in 2015
Wed, 09 Dec 2015 22:33:44 GMT

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