Amazon (AMZN) Offering Possible 68.35% 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 $297.50 short call and a strike $302.50 long call offers a potential 68.35% 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 $297.50 by expiration. The full premium credit of $2.03 would be kept by the premium seller. The risk of $2.97 would be incurred if the stock rose above the $302.50 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 49.15 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 arrives on Golden Globes stage
Mon, 12 Jan 2015 05:54:09 GMT
Financial Times – Amazon crowned its arrival as a big force in television at Hollywood's Golden Globes ceremony on Sunday when it fought off leading players in the established broadcast and cable world to scoop a pair of …

Amazon wins Golden Globes for ‘Transparent'
Mon, 12 Jan 2015 04:55:00 GMT

Amazon scores two Golden Globes, Netflix debuts House of Cards trailer
Mon, 12 Jan 2015 04:14:00 GMT

India: SunEdison To Invest In Solar, Alibaba In E-Payment
Mon, 12 Jan 2015 03:54:00 GMT

Amazon wins first Golden Globe for ‘Transparent'
Mon, 12 Jan 2015 02:42:00 GMT

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