Capital One (COF) Offering Possible 49.25% 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 $74.00 short call and a strike $79.00 long call offers a potential 49.25% 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 $74.00 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $3.35 would be incurred if the stock rose above the $79.00 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 31.31 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

Alliance Data Systems Shares Surge on Impressive Results
Thu, 29 Oct 2020 21:49:09 +0000
The stock is up 20%

Capital One Announces Quarterly Dividend
Thu, 29 Oct 2020 18:38:00 +0000
Capital One Financial Corporation (NYSE: COF) today announced a quarterly dividend of $0.10 per share payable November 19, 2020, to stockholders of record as of November 9, 2020. The company has announced dividends on its common stock every quarter since it became an independent company on February 28, 1995. Dividends declared by the company are eligible for direct reinvestment in the company's common stock under its Dividend Reinvestment and Stock Purchase Plan. For additional Plan information, stockholders should contact Computershare Trust Company, N.A., at 1-888-985-2057 (inside the U.S. and Canada) or 1-781-575-2725 (outside the U.S. and Canada).

7 Big Credit Card Bonuses That Are Only Here for a Limited Time
Fri, 23 Oct 2020 20:18:16 +0000
On this list, you'll find the current crop of big credit card bonus offers. Capital One recently doubled the sign-up bonus on one of its best travel credit cards. New cardholders can now earn 100,000 miles from the Capital One® Venture® Rewards Credit Card, which has a $95 annual fee.

Card Companies, Surprised by Low Write-Offs, Seek New Customers
Fri, 23 Oct 2020 17:24:28 +0000
(Bloomberg) — Lenders have spent months puzzled by the persistently low delinquencies on their credit cards. Now, they’re seizing the moment.Card companies Capital One Financial Corp. and American Express Co. said this week they’ve jump-started marketing efforts in recent weeks to bolster their brands and acquire new customers. And they plan to keep up the push through the holiday season.“This is the biggest disconnect that I certainly have experienced in my three decades of building Capital One between what we see in the economy itself and the actual performance of the consumer,” Capital One Chief Executive Officer Richard Fairbank said on a conference call Thursday. Still, he cautioned, “this is not a declaration that we see the light at the end of the tunnel.”The fourth quarter is generally the busiest for card issuers’ marketing and customer-acquisition efforts, with many consumers applying for new credit lines or using up existing card rewards for their holiday shopping.But investors had been wondering what this year would look like, given the surge in unemployment caused by the Covid-19 crisis and resulting recession, and lenders’ stockpiling of reserves since the pandemic started. The last three months of 2020 will be particularly fraught for credit quality, with U.S. and worldwide Covid-19 cases spiking again and raising the prospect of additional pressure on consumers and the economy.Capital One expects “a significant sequential increase” in marketing costs in the last three months of the year after spending $283 million in the third quarter. At AmEx, executives said such costs should be similar to the $1.8 billion spent last quarter. That would be more than the $1.6 billion in marketing and business-development costs analysts were expecting.“During times like this, probably the go-to move is to reduce marketing, but we don’t believe that’s true,” AmEx CEO Stephen Squeri said on a conference call Friday. “The most important thing we can do is solidify our foundation.”Discover Financial Services, for its part, sought to maintain new-account marketing throughout the pandemic even as competitors pulled back, CEO Roger Hochschild said Thursday.“If the economic environment continues to improve, it’s natural that we’re going to spend more money on customer acquisition,” Hochschild said. “But the other expense lines — professional fees, information processing, other miscellaneous expense — we’re going to keep a foot on those.”Adding customers comes with risks. Card companies don’t want to be a borrower’s lender of last resort should the economy continue to suffer, and it can take years for new customers to become profitable.In recent years, many lenders have focused on adding cardholders who tend not to carry a balance, known in the industry as “transactors.” For these customers, companies reap billions of dollars in swipe fees when credit cards are used at checkout. But even that model is now being strained, given that the biggest swipe fees are paid by airlines, hotels and other retailers in travel and entertainment — industries hurt most by the pandemic.“As far top-line growth for new cards acquired,” Squeri warned, “I think it’s going to be hard to see the top-line growth, because you’ve got this compression that’s happened due to travel.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Capital One (COF) Up 3.2% on Q3 Earnings and Revenue Beat
Fri, 23 Oct 2020 10:22:10 +0000
Higher fee income and reserve releases support Capital One's (COF) Q3 earnings. This seems to have cheered investors as the company's shares rally in after market trading.

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.