American Express (AXP) Offering Possible 14.16% Return Over the Next 29 Calendar Days

American Express's most recent trend suggests a bearish bias. One trading opportunity on American Express is a Bear Call Spread using a strike $82.50 short call and a strike $87.50 long call offers a potential 14.16% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $82.50 by expiration. The full premium credit of $0.62 would be kept by the premium seller. The risk of $4.38 would be incurred if the stock rose above the $87.50 long call strike price.

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

The RSI indicator is at 44.21 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 Express

American Express Will Debut ‘Inspiring' Celebrity Ads at Oscars
Wed, 18 Feb 2015 21:07:51 GMT

American Express Company — Moody's: Loss of Costco partnership is negative for AmEx card ABS
Wed, 18 Feb 2015 16:30:03 GMT

Traders are betting on quick bounce from this Dow stock
Wed, 18 Feb 2015 16:19:27 GMT

Stocks mildly lower ahead of Fed minutes; Energy weighs
Wed, 18 Feb 2015 16:12:21 GMT

American Express: ‘Strength in Credit' But Estimates Cut Anyway (Probably Because of Costco)
Wed, 18 Feb 2015 15:54:00 GMT

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