CarMax (KMX) Offering Possible 12.36% Return Over the Next 24 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $49.00 short put and a strike $44.00 long put offers a potential 12.36% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $49.00 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $44.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for CarMax is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for CarMax is bullish.

The RSI indicator is at 63.43 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 CarMax

Richard Sharp, Who Led CarMax in Circuit City Split, Dies at 67
Wed, 25 Jun 2014 21:36:53 GMT

Ex-Circuit City CEO, CarMax co-founder Sharp dies
Wed, 25 Jun 2014 19:44:46 GMT

[$$] Consumer, Safety Groups Seek FTC Probe of CarMax
Tue, 24 Jun 2014 22:51:09 GMT

Consumer groups seek FTC probe on CarMax for “deceptive” ads – NYT
Tue, 24 Jun 2014 19:58:54 GMT
Reuters – Used-car retailer CarMax Inc's advertisements promising its vehicles undergo quality checks are deceptive as it does not fix cars recalled by automakers before reselling them, 11 consumer groups said in a petition to the U.S. Federal Trade Commission, the New York Times reported. CarMax, however, said that used-car retailers were not authorized by automakers to carry out repairs to recalled cars. “CarMax provides the necessary information for customers to register their vehicle with the manufacturer to determine if it has an open recall and be notified about future recalls,” CarMax spokesman Casey Werderman said in an email to Reuters on Tuesday. Werderman also said CarMax supported legislation mandating used-car retailers to fix recalled cars.

Petition seeks to block CarMax sales of unrepaired recalled cars
Tue, 24 Jun 2014 17:38:00 GMT

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