Amazon (AMZN) Offering Possible 55.04% Return Over the Next 38 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $300.00 short call and a strike $310.00 long call offers a potential 55.04% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $300.00 by expiration. The full premium credit of $3.55 would be kept by the premium seller. The risk of $6.45 would be incurred if the stock rose above the $310.00 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 36.48 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

Sellers Need Amazon, but at What Cost?
Thu, 15 Jan 2015 04:45:26 GMT
The Wall Street Journal – Some small-business owners are coming to grips with the reality that Amazon.com is not just a partner—it is a rival, too.

Amazon executive hopes for era of peace with publishers
Thu, 15 Jan 2015 01:16:42 GMT

Amazon executive hopes for era of peace with publishers
Thu, 15 Jan 2015 01:12:39 GMT

Consumer Electronics Show (CES) 2015: Game of Drones! – Analyst Blog
Wed, 14 Jan 2015 23:25:11 GMT

FM final trade: Apple … and special guest
Wed, 14 Jan 2015 22:44:00 GMT

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