Amazon (AMZN) Offering Possible 75.44% Return Over the Next 9 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $317.50 short call and a strike $322.50 long call offers a potential 75.44% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $317.50 by expiration. The full premium credit of $2.15 would be kept by the premium seller. The risk of $2.85 would be incurred if the stock rose above the $322.50 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 25.98 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

4:01 pm Amazon.com to acquire comiXology; terms not disclosed, expected to close in the second quarter
Fri, 11 Apr 2014 20:01:00 GMT

Nikkei leads rout in Asia shares after US selloff; China CPI in focus
Fri, 11 Apr 2014 02:12:00 GMT
CNBC – Asian stocks endured losses on Friday as a steep selloff on Wall Street overshadowed benign Chinese consumer inflation data.

[$$] Amazon Agrees to Buy Digital Comics Provider ComiXology
Fri, 11 Apr 2014 01:19:52 GMT
The Wall Street Journal – Amazon.com Inc. agreed to acquire digital-comics provider comiXology, scooping up an app that has been a top-grossing performer on the iPad in recent years.

Amazon Buys ComiXology
Fri, 11 Apr 2014 00:38:13 GMT

Yes, Amazon's delivery drones are real (maybe)
Fri, 11 Apr 2014 00:17:00 GMT

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