CarMax (KMX) Offering Possible 14.94% Return Over the Next 20 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $62.50 short put and a strike $57.50 long put offers a potential 14.94% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $62.50 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock dropped below the $57.50 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 71.96 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, Your Rusty Underside Is Showing
Tue, 23 May 2017 20:35:00 +0000
Now is not the time to be investing in KMX.

Analyst: Carvana's Success Shows Used Car Market Ready For Disruption, Sees 35% Upside
Tue, 23 May 2017 17:27:26 +0000
Analysts at BMO Capital Markets initiated coverage of Carvana Co (NYSE: CVNA ) with an Outperform rating and $15 price target as the company is well positioned to benefit from the upcoming e-commerce disruption …

CarMax Is Showing a Rusty Underside
Tue, 23 May 2017 16:00:00 +0000
Now is not the time to be investing in KMX.

Top Gainers in the Consumer Sector: May 15–19, 2017
Mon, 22 May 2017 19:36:28 +0000
On May 17, 2017, Colgate-Palmolive (CL) stock rose ~6.0% on the back of rumors that the company might be sold.

CarMax Tops the S&P 500: Must-See Chart
Thu, 18 May 2017 18:44:00 +0000
Shares of KMX are surging Thursday following positive comments from Wedbush.

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