CarMax (KMX) Offering Possible 7.69% Return Over the Next 19 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $48.00 short call and a strike $55.00 long call offers a potential 7.69% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $48.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $6.50 would be incurred if the stock rose above the $55.00 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 25.36 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

Investors Should Drive AutoNation Into Their Portfolios
Mon, 29 Sep 2014 14:25:00 GMT

[$$] Next Week
Sat, 27 Sep 2014 06:29:00 GMT

Sectors down this week: Energy, utilities & more
Fri, 26 Sep 2014 20:00:00 GMT

CarMax Announces Chief Information Officer Transition
Thu, 25 Sep 2014 13:55:00 GMT
Business Wire – CarMax, Inc. , the nation’s largest retailer of used cars, today announced the promotion of Shamim Mohammad to senior vice president and chief information officer.

Moody's upgrades CarMax prime auto loan ABS
Wed, 24 Sep 2014 17:54:13 GMT

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