American Express (AXP) Offering Possible 28.53% Return Over the Next 18 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 $81.50 short call and a strike $86.50 long call offers a potential 28.53% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $81.50 by expiration. The full premium credit of $1.11 would be kept by the premium seller. The risk of $3.89 would be incurred if the stock rose above the $86.50 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 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 American Express

MasterCard Beats on Q4 Earnings, Expenses Mar Margins – Analyst Blog
Fri, 30 Jan 2015 17:41:05 GMT

Visa (V) Posts Solid Q1 Earnings, Initiates 4:1 Stock Split – Analyst Blog
Fri, 30 Jan 2015 17:10:05 GMT

American Express CIO Testifies Before Senate on Cybersecurity and Info Sharing
Thu, 29 Jan 2015 00:11:27 GMT

What Jim Cramer Is Trading: American Express, SunTrust and Unilever
Wed, 28 Jan 2015 14:28:00 GMT

American Express plans to start operations in Cuba
Tue, 27 Jan 2015 22:14:31 GMT

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