Capital One (COF) Offering Possible 25.31% Return Over the Next 9 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 $89.50 short call and a strike $94.50 long call offers a potential 25.31% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $89.50 by expiration. The full premium credit of $1.01 would be kept by the premium seller. The risk of $3.99 would be incurred if the stock rose above the $94.50 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 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 Capital One

Capital One Announces Quarterly Dividend
Thu, 03 May 2018 21:05:00 +0000
Company also declares preferred stock dividends MCLEAN, Va. , May 3, 2018 /PRNewswire/ — Capital One Financial Corporation (NYSE: COF) today announced a quarterly dividend of $0.40 per share payable May …

Don’t fall for this expensive and common misconception about credit cards
Tue, 01 May 2018 15:25:22 +0000
Many credit cardholders don’t understand their card’s foreign transaction fees, according to two surveys released this week. • More than half — 52% — of people don’t even know if their credit card charges a foreign transaction fee, according to a survey of 400 people by the personal-finance website WalletHub. • And some 86% of people don’t realize foreign transaction fees can apply both abroad and while the cardholder is in the U.S., making purchases from international merchants.

2 Lousy Reasons Why Americans Aren't Saving for Retirement
Sat, 28 Apr 2018 22:04:00 +0000
If you've been making these particular excuses, stop — and start doing better.

Bank Stock Roundup: STI, RF, FITB & COF Beat Q1 Estimates, WFC to Pay $1B Fine
Fri, 27 Apr 2018 14:31:02 +0000
A huge fine for Wells Fargo overshadows banks' improved performance in first-quarter 2018. Overall, the performance of bank stocks remains pessimistic.

Card Issuers Start to See Credit Quality Diverge
Fri, 27 Apr 2018 11:00:00 +0000
All credit card issuers are at different stages of growth in this credit cycle and displaying mixed performance. On the basis of card issuer performance this quarter,  Capital One Financial COF appears to be one step ahead of peers, while  Synchrony Financial SYF and  Alliance Data Systems ADS are still digesting recent elevated growth and  American Express AXP is trying to catch up. For credit cards, the best leading indicator of credit performance is a company's delinquency rate, as one quarter's delinquencies are highly correlated to credit losses in the following quarter.

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