American Electric (AEP) Offering Possible 38.89% Return Over the Next 29 Calendar Days

American Electric's most recent trend suggests a bullish bias. One trading opportunity on American Electric is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 38.89% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $1.40 would be kept by the premium seller. The risk of $3.60 would be incurred if the stock dropped below the $85.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for American Electric 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 American Electric is bearish.

The RSI indicator is at 44.26 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 American Electric

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Thu, 12 Mar 2020 13:00:10 +0000
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Is American Electric Power Company, Inc. (NYSE:AEP) Excessively Paying Its CEO?
Wed, 11 Mar 2020 11:36:17 +0000
In 2011 Nick Akins was appointed CEO of American Electric Power Company, Inc. (NYSE:AEP). This analysis aims first to…

AEP Named a 2020 Women on Boards Winning Company
Mon, 09 Mar 2020 17:43:00 +0000
American Electric Power (NYSE: AEP) has been recognized by 2020 Women on Boards as a Winning "W" Company for the third consecutive year. The recognition is given to Russell 3000 companies whose boards have 20% or more seats held by women. AEP's 14-member board includes four women, or 28%.

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