CarMax (KMX) Offering Possible 8.7% Return Over the Next 23 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $50.00 short put and a strike $45.00 long put offers a potential 8.7% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $50.00 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 dropped below the $45.00 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 at 66.31 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

Richard Sharp, Leader at Circuit City and CarMax, Dies at 67
Fri, 27 Jun 2014 01:30:47 GMT

Why Carmax (KMX) Stock Is Rising Today
Thu, 26 Jun 2014 14:43:00 GMT

Is CarMax (KMX) Stock a Solid Choice Right Now?
Thu, 26 Jun 2014 10:53:31 GMT

Richard Sharp, Who Led CarMax in Circuit City Split, Dies at 67
Wed, 25 Jun 2014 21:36:53 GMT

Ex-Circuit City CEO, CarMax co-founder Sharp dies
Wed, 25 Jun 2014 19:44:46 GMT

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