CarMax (KMX) Offering Possible 17.02% Return Over the Next 38 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $47.00 short call and a strike $52.50 long call offers a potential 17.02% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $47.00 by expiration. The full premium credit of $0.80 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $52.50 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 37.6 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 INC Financials
Wed, 15 Oct 2014 17:04:10 GMT

CARMAX INC Files SEC form 10-Q, Quarterly Report
Wed, 08 Oct 2014 17:41:26 GMT

Beepi Raises $60 Million to Sell Used Cars to the Smartphone Generation
Mon, 06 Oct 2014 12:43:08 GMT
The Wall Street Journal – Like Uber, Beepi is targeting a generation of millennials–people roughly in their late-20s and 30s–who first turn to their phones to solve problems and complete transactions.

Video: Warren Buffett To Buy ‘A Lot More' Car Dealers
Thu, 02 Oct 2014 16:21:00 GMT

Warren Buffett Hijacks The Auto Business With Dealership Splash
Thu, 02 Oct 2014 15:37:00 GMT

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