Amazon Offering Possible 56.25% Return Over the Next 24 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $390.00 short call and a strike $400.00 long call offers a potential 56.25% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $390.00 by expiration. The full premium credit of $3.60 would be kept by the premium seller. The risk of $6.40 would be incurred if the stock rose above the $400.00 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 37.28 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Amazon

Amazon Wants To Include Peer-to-Peer Payments In Its “Real World” PayPal Competitor
Thu, 30 Jan 2014 00:30:33 GMT
TechCrunch – Earlier today, the WSJ published a report on how Amazon is building a Kindle-based point-of-sale payments service for local merchants using technology it picked up via its Gopago acquisition –something we actually reported on back in December. In fact, this looks like just part of what Amazon has in mind. The e-commerce giant is also developing a solution for person-to-person payments, putting it in even closer competition with P2P payment giant PayPal. Those Amazon phones we and others keep talking about could be coming soon — the latest that we’ve heard, by the way, is that they may get announced in the next 60 days and ship this summer. Amazon describes the P2P solution as being part of a bigger strategy to build “products and services which will delight billions of customers as they buy and sell things in the real world.” The company is currently looking to hire a number of developers in offline payments.

Major Expansion Ahead at The Washington Post
Thu, 30 Jan 2014 00:28:37 GMT
New York Times – The budget at the newspaper owned by Jeffrey Bezos, the founder of Amazon.com, will be increased and dozens of new employees will be hired for the newsroom.

IDC: Tablet Shipments Grew by 62% in Q4
Thu, 30 Jan 2014 00:08:11 GMT
Motley Fool – Tablet shipments continue to rise, but the IT research company warns that growth will slow in the near future.

[$$] Amazon Gets Physical
Wed, 29 Jan 2014 23:09:25 GMT
The Wall Street Journal – Amazon.com plans to offer brick-and-mortar retailers a checkout system that uses Kindle tablets as soon as this summer.

Now Amazon Wants a Piece of the Payments Pie
Wed, 29 Jan 2014 22:45:49 GMT
The Wall Street Journal – Amazon.com is the latest to jump into the increasingly competitive payments business with a plan to offer in-store checkout.

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