Capital One (COF) Offering Possible 5.71% Return Over the Next 11 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 $80.00 short call and a strike $85.00 long call offers a potential 5.71% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $80.00 by expiration. The full premium credit of $0.27 would be kept by the premium seller. The risk of $4.73 would be incurred if the stock rose above the $85.00 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 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

The Zacks Analyst Blog Highlights: Berkshire Hathaway, Capital One Financial, Principal Financial Group, Lincoln National and BioCryst Pharmaceuticals
Wed, 06 Aug 2014 13:20:38 GMT

Why Capital One (COF) Stock Is Lower Today
Wed, 06 Aug 2014 12:33:00 GMT

Capital One Says Subpoenaed Over Anti-Money Laundering
Tue, 05 Aug 2014 21:46:51 GMT

CAPITAL ONE FINANCIAL CORP Files SEC form 10-Q, Quarterly Report
Tue, 05 Aug 2014 20:41:09 GMT

Bank Stock Roundup: Settlement, Restructuring Continues – Citigroup, BofA and JPMorgan in Focus
Mon, 04 Aug 2014 16:35:31 GMT

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