Amazon Offering Possible 29.53% Return Over the Next 15 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $405.00 short call and a strike $415.00 long call offers a potential 29.53% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $405.00 by expiration. The full premium credit of $2.28 would be kept by the premium seller. The risk of $7.72 would be incurred if the stock rose above the $415.00 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

7 tech questions for 2014
Sun, 05 Jan 2014 17:02:00 GMT
Fortune – FORTUNE — Some people think of a new year as a time for resolutions, others for predictions. Me? Everywhere I turn, I find myself asking questions. For example, I recently wondered why Jeff Bezos's wife, …

Amazon's Bezos rescued by Ecuadorian Navy
Sun, 05 Jan 2014 15:05:04 GMT
CNBC – Amazon founder Jeff Bezos was flown from the Galápagos by an Ecuadorian navy helicopter after a kidney stone attack.

Does Groupon's Acquisition of TicketMonster Set It Up to be the Next Amazon?
Sun, 05 Jan 2014 13:32:14 GMT
Motley Fool – A look at Groupon's strategic acquisition of TicketMonster and how it's setting the company up for its future.

Outlook: Amazon Management Gets More Ambitious
Sun, 05 Jan 2014 12:05:05 GMT
Wall St. Cheat Sheet – Michael Pachter of Wedbush Securities believes that investors must make a leap of faith that its revenues will continue to grow with Amazon.

Could the “Mayday” Button Finally Make Amazon a Major Tablet Contender?
Sun, 05 Jan 2014 12:02:02 GMT
Motley Fool – Amazon has for years been battling, and losing, to Apple, Samsung, and others in the tablet market; yet recently Amazon has stepped up its game with the revolutionary “mayday” button, which could …

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