CarMax (KMX) Offering Possible 9.89% Return Over the Next 28 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $67.50 short call and a strike $72.50 long call offers a potential 9.89% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $67.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $72.50 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 22.48 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 Board Elects Two New Directors
Fri, 02 Feb 2018 13:45:00 +0000
CarMax, Inc. today announced that its board of directors has elected Peter Bensen and Robert Hombach to membership on the board effective April 1. Bensen and Hombach will both serve on the Audit Committee.

5 Gurus' Stock Picks for a Pricey Equities Market
Thu, 01 Feb 2018 13:00:00 +0000
Navigating a very pricey market: 5 investing gurus shared their top stock picks with Barron's.

Oppenheimer Upgrades CarMax, Says Used Car Sales, Tax Savings Support Bullish Move
Thu, 18 Jan 2018 17:23:22 +0000
Analysts at Oppenheimer assumed a “cautious” stance on CarMax, Inc (NYSE: KMX ) in October, but three months later the firm is upgrading the stock.  The Analyst Oppenheimer's Brian Nagel upgraded …

Why CarMax Stock Won 2 Upgrades In 2 Weeks
Thu, 18 Jan 2018 16:53:51 +0000
Growth may or may not decline — but the shares have fallen already. Is CarMax cheap enough?

CarMax Grows on Store Expansion, Rising SG&A Expenses a Woe
Tue, 16 Jan 2018 13:39:01 +0000
CarMax's (KMX) store expansion initiatives help it boost its revenue growth. However, expenses related to store openings hit the company's gross margin.

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