Baker Hughes (BHI) Offering Possible 9.89% Return Over the Next 8 Calendar Days

Baker Hughes's most recent trend suggests a bearish bias. One trading opportunity on Baker Hughes is a Bear Call Spread using a strike $55.50 short call and a strike $60.50 long call offers a potential 9.89% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $55.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $60.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Baker Hughes 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 Baker Hughes 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 Baker Hughes

‘It's Starting' — U.S. Drillers Idle Most Rigs in Years
Sat, 13 Dec 2014 01:01:00 GMT

Sharing the Pain in Shale
Thu, 11 Dec 2014 21:01:05 GMT

BAKER HUGHES INC Files SEC form 8-K, Change in Directors or Principal Officers
Wed, 10 Dec 2014 21:27:40 GMT

Baker Hughes — Halliburton and How to Profit From the $36B Merger
Tue, 09 Dec 2014 14:24:00 GMT

US rig count rises after the oil rig count increased last week
Tue, 09 Dec 2014 14:08:26 GMT

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