American Express (AXP) Offering Possible 9.41% Return Over the Next 22 Calendar Days

American Express's most recent trend suggests a bullish bias. One trading opportunity on American Express is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 9.41% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $87.50 by expiration. The full premium credit of $0.43 would be kept by the premium seller. The risk of $4.57 would be incurred if the stock dropped below the $82.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for American Express is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for American Express is bullish.

The RSI indicator is at 72.97 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

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Sat, 01 Nov 2014 12:49:00 GMT

10-Q for American Express Co.
Fri, 31 Oct 2014 00:08:29 GMT

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Thu, 30 Oct 2014 19:02:00 GMT

GLOBAL MARKETS-Dollar surges as Fed ends QE on hawkish note
Thu, 30 Oct 2014 17:53:14 GMT
Reuters – UK Focus – The dollar surged to a three-week high and government bond yields rose on Thursday, one day after the U.S. While the Fed's decision to no longer add to its holdings of Treasury bonds and mortgage-backed securities, a program which at its peak pumped $85 billion a month into the financial system, investors were somewhat surprised by the central bank's expression of confidence in the U.S. The policy statement prompted financial markets to rethink the growing consensus that the Fed's first interest-rate hike would not be until late in 2015. The Fed did note in its statement Wednesday after its two-day meeting that overnight borrowing costs would remain near zero for a “considerable time.”

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