CarMax Offering Possible 11.11% Return Over the Next 12 Calendar Days

CarMax's most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $47.00 short put and a strike $42.00 long put offers a potential 11.11% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $47.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock dropped below the $42.00 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 75.41 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

Group 1 Automotive Meets On Earnings, Beats On Sales
Wed, 05 Feb 2014 16:16:00 GMT

CarMax (KMX) Marked As A Barbarian At The Gate
Mon, 03 Feb 2014 14:50:00 GMT

CARMAX INC Files SEC form 8-K, Financial Statements and Exhibits
Fri, 31 Jan 2014 21:12:02 GMT

Automakers crank up ads for Super Bowl
Wed, 29 Jan 2014 04:11:19 GMT
USA TODAY – Look for nine automakers to show up in the Big Game this year.

Super Bowl Ads Without the Super Bowl
Tue, 28 Jan 2014 23:28:21 GMT
The New Yorker – Having sacrificed a little of our collective dignity by agreeing to treat Super Bowl advertisements as a worthy companion entertainment to the game itself, the least we can expect, it seems, is that those …

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