Capital One (COF) Offering Possible 15.21% Return Over the Next 17 Calendar Days

Capital One's most recent trend suggests a bearish bias. One trading opportunity on Capital One is a Bear Call Spread using a strike $82.50 short call and a strike $87.50 long call offers a potential 15.21% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $82.50 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock rose above the $87.50 long call strike price.

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

The RSI indicator is at 46.65 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 Capital One

8:53 am Capital One Canada confirmed that its Canadian bank branch will now be the exclusive credit card issuer for Costco (COST)
Wed, 01 Oct 2014 12:53:00 GMT

US STOCKS-Options market is underpricing earnings moves -Goldman
Wed, 01 Oct 2014 12:09:59 GMT

Capital One Canada announces new relationship with Costco
Wed, 01 Oct 2014 12:00:00 GMT
CNW Group – Capital One Canada announces new relationship with Costco

Why Maverick Capital exited position in Capital One Financial
Mon, 29 Sep 2014 17:00:21 GMT

Would Regulation Make Airlines’ Mileage Programs Less Maddening?
Thu, 25 Sep 2014 17:38:52 GMT

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