Amazon (AMZN) Offering Possible 57.48% Return Over the Next 39 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 57.48% return on risk over the next 39 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 $3.65 would be kept by the premium seller. The risk of $6.35 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 37.43 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’s Newest Hire: Woody Allen
Wed, 14 Jan 2015 07:05:32 GMT
The Wall Street Journal – Amazon, fresh from its Golden Globe wins for its original show “Transparent,” has signed filmmaker Woody Allen to write and direct his first television series.

Amazon Signs Woody Allen to His First TV Show
Wed, 14 Jan 2015 01:25:37 GMT

Amazon sees Netflix's Adam Sandler, raises with Woody Allen
Tue, 13 Jan 2015 23:53:00 GMT

After Cosby's Downfall, Amazon's Deal With Woody Allen Strikes Dissonant Note
Tue, 13 Jan 2015 23:52:00 GMT

After awards coup, Amazon lands Woody Allen for TV series
Tue, 13 Jan 2015 23:22:13 GMT

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