CarMax (KMX) Offering Possible 14.58% Return Over the Next 17 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $52.50 short put and a strike $47.00 long put offers a potential 14.58% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $52.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.80 would be incurred if the stock dropped below the $47.00 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 above 80 which suggests that the stock is in overbought 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 CarMax

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Thu, 03 Jul 2014 11:57:01 GMT

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Sat, 28 Jun 2014 11:00:00 GMT

CARMAX INC Files SEC form 8-K, Submission of Matters to a Vote of Security Holders
Fri, 27 Jun 2014 20:40:19 GMT

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Thu, 26 Jun 2014 14:43:00 GMT

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Thu, 26 Jun 2014 10:53:31 GMT

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