Automatic Data (ADP) Offering Possible 13.64% Return Over the Next 20 Calendar Days

Automatic Data's most recent trend suggests a bearish bias. One trading opportunity on Automatic Data is a Bear Call Spread using a strike $106.00 short call and a strike $111.00 long call offers a potential 13.64% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $106.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $111.00 long call strike price.

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

The RSI indicator is at 33.1 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 Automatic Data

Ackman Extends Olive Branch to ADP Board
Thu, 24 Aug 2017 17:34:00 +0000
Bill Ackman has been pressuring ADP to add three of his nominees to their board.

Billionaire investor Ackman to meet with ADP board on September 5
Thu, 24 Aug 2017 16:31:48 +0000
Activist investor William Ackman, who has been urging Automatic Data Processing Inc to cut costs, will meet with the board of the U.S. human resources outsourcing firm next month, a regulatory filing showed …

Bill Ackman sends new letter to ADP
Thu, 24 Aug 2017 15:25:00 +0000
CNBC's Leslie Picker reports on a letter from Pershing Square's Bill Ackman to ADP.

5 Stocks Billionaire Investor Bill Ackman Is Buying and Selling
Thu, 24 Aug 2017 12:15:00 +0000
Regulatory filings show big changes in billionaire Bill Ackman's Pershing Square fund holdings.

Will Bill Ackman’s Position in ADP Continue to Affect the Stock?
Thu, 24 Aug 2017 11:36:27 +0000
On July 27, 2017, Automatic Data Processing (ADP) stock rose nearly 13.0% after reports suggested that billionaire investor Bill Ackman took a significant position in the stock.

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