American Express Offering Possible 14.16% Return Over the Next 22 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 $87.50 short call and a strike $92.50 long call offers a potential 14.16% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $87.50 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 $92.50 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

American Express’ Impressive Run Likely to Continue
Sat, 01 Feb 2014 19:02:03 GMT

Testing the 50-Day Line
Sat, 01 Feb 2014 14:35:00 GMT

American Express Says Objections Could Scuttle Fee Accord
Sat, 01 Feb 2014 00:29:41 GMT

U.S. retailer Michaels warns of possible payment card breach
Fri, 31 Jan 2014 23:49:47 GMT

Nasdaq makes a comeback
Fri, 31 Jan 2014 18:01:00 GMT

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