Amazon Offering Possible 14.03% 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 $360.00 short call and a strike $370.00 long call offers a potential 14.03% 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 $360.00 by expiration. The full premium credit of $1.23 would be kept by the premium seller. The risk of $8.77 would be incurred if the stock rose above the $370.00 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 below 20 which suggests that the stock is in oversold territory.

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

Stocks hover below records
Mon, 11 Nov 2013 15:31:00 GMT
CNNMoney.com – Investors were taking a breather Monday after driving the Dow Jones industrial average to a new record high last week. The Dow and S&P 500 were slightly higher in morning trading while the Nasdaq was a …

3 Growth Companies Run by Successful Entrepreneurs
Mon, 11 Nov 2013 15:23:56 GMT
Motley Fool – Amazon, Starbucks and Chipotle Mexican Grill are three growing companies led by successful entrepreneurs, and that is a big advantage when it comes to long term returns for shareholders.

Johnson & Johnson Wants Extra Strength Assurance from Amazon
Mon, 11 Nov 2013 15:14:02 GMT
Wall St. Cheat Sheet – Johnson & Johnson is trying to gain more control over product sales on Amazon.com, but will its efforts pay off?

Newscast: The Dow is back in the plus column
Mon, 11 Nov 2013 15:02:50 GMT
MarketWatch – And Johnson & Johnson and Amazon are doing battle over 3rd-party sellers. MarketWatch's Ann Cates reports.

Amazon, US Postal Service will deliver on Sundays
Mon, 11 Nov 2013 14:57:34 GMT

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