Cliffs Natural Offering Possible 9.89% Return Over the Next 10 Calendar Days

Cliffs Natural's most recent trend suggests a bearish bias. One trading opportunity on Cliffs Natural is a Bear Call Spread using a strike $25.00 short call and a strike $30.00 long call offers a potential 9.89% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $25.00 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 $30.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Cliffs Natural 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 Cliffs Natural is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold 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 Cliffs Natural

Netflix Shares Sink on Downgrade
Tue, 07 Jan 2014 17:32:46 GMT
Fox Business – What a difference a few days make: Netflix was 2013s best S&P 500 performer now its 2014s worst performer.

Cliffs Natural Lifted to Outperform
Tue, 07 Jan 2014 13:10:04 GMT
Zacks – We have upgraded our recommendation on mining company Cliffs Natural Resources to Outperform.

Cliffs Natural Resources: 4 Reasons Why One Of 2013's Biggest Losers Could Make A 2014 Rally
Tue, 07 Jan 2014 09:28:46 GMT
Seeking Alpha – Most stocks in the S&P 500 this year have performed very well but not all of them. In fact, some of them like Cliffs Natural Resources ( CLF ) have performed downright miserably. Cliffs success is largely …

Jim Cramer's ‘Mad Money' Recap: Profiting From Down Days
Tue, 07 Jan 2014 01:20:00 GMT
TheStreet – As history has proven, buying first thing Monday morning when the markets are up big is never a winning move, Cramer says.

Unloved stocks: Cramer sifts through 5 S&P laggards
Mon, 06 Jan 2014 23:40:35 GMT
CNBC – Early in January, pros take a long hard look at the worst performing stocks from the previous year. What does Jim Cramer see? Find out now!

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