CarMax (KMX) Offering Possible 8.91% Return Over the Next 24 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $52.50 short put and a strike $47.00 long put offers a potential 8.91% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $52.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $5.05 would be incurred if the stock dropped below the $47.00 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 77.13 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 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

CarMax Board Increases Share Repurchase Authorization by $2 Billion
Wed, 22 Oct 2014 21:51:02 GMT
noodls – RICHMOND, Va.–(BUSINESS WIRE)–Oct. 22, 2014– CarMax, Inc. (NYSE: KMX) today announced that its Board of Directors has approved a $2 billion expansion of the company's share repurchase program, for an …

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