CarMax (KMX) Offering Possible 8.7% Return Over the Next 18 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 8.7% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $62.50 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 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

CarMax Statement Regarding Recalls – UPDATE
Mon, 03 Nov 2014 22:25:40 GMT
noodls – CarMax was founded to fundamentally change the way Americans buy used vehicles and is the industry leader in integrity and transparency. As part of our commitment to transparency, we notify all customers …

CarMax Grand Opens in Reno
Wed, 29 Oct 2014 21:02:11 GMT
noodls – Announces $30,000 in Contributions to Local Nonprofit RICHMOND, Virginia (October 29, 2014) – CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, today celebrated its first store in Reno, …

Analyst Sees Clear Lane For AutoNation, Other Dealers
Wed, 29 Oct 2014 17:35:00 GMT

Stocks Hold Big Gains; Tyler, Epam Break Out
Thu, 23 Oct 2014 17:32:00 GMT

Why CarMax (KMX) Stock Is Gaining Today
Thu, 23 Oct 2014 15:08:00 GMT

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