CarMax (KMX) Offering Possible 13.64% Return Over the Next 23 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $62.50 short call and a strike $67.50 long call offers a potential 13.64% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $67.50 long call strike price.

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

The RSI indicator is at 26.72 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

CarMax Takes a Step Back
Mon, 24 Dec 2018 22:10:00 +0000
Sales fell back into negative territory, but demand trends weren't as bad as the top-line figure implies.

CarMax Stock Is Rising After an Analyst Said the Selloff Went Too Far
Mon, 24 Dec 2018 17:01:00 +0000
On another down day for the market, CarMax stock is a bright spot, rising on the back of an upgrade from Guggenheim

Company News For Dec 24, 2018
Mon, 24 Dec 2018 14:30:02 +0000
Companies In The News Are: NKE,ACN,KMX,ATSG,AMZN

The Government Shutdown Drags on, Fed Fears, and More Christmas Eve Stock Market News
Mon, 24 Dec 2018 13:32:00 +0000
T’was the night before Christmas: It’s a quiet Monday morning on Wall Street. The Dow Jones Industrial Averagefutures are 0.8% lower, S&P 500 futures have declined 0.6% and Nasdaq futures are down 0.6%. We guess it’s news: The government shutdown entered its third day on Monday.

Edited Transcript of KMX earnings conference call or presentation 21-Dec-18 2:00pm GMT
Sat, 22 Dec 2018 06:26:18 +0000
Q3 2019 Carmax Inc Earnings Call

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