Cummins (CMI) Offering Possible 14.29% Return Over the Next 39 Calendar Days

Cummins's most recent trend suggests a bearish bias. One trading opportunity on Cummins is a Bear Call Spread using a strike $135.00 short call and a strike $145.00 long call offers a potential 14.29% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $135.00 by expiration. The full premium credit of $1.25 would be kept by the premium seller. The risk of $8.75 would be incurred if the stock rose above the $145.00 long call strike price.

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

The RSI indicator is at 39.55 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 Cummins

Cummins Inc. Declares Quarterly Common Stock Dividend
Tue, 14 Oct 2014 20:57:43 GMT
noodls – COLUMBUS, IN — (Marketwired) — 10/14/14 — The Board of Directors of Cummins Inc.(NYSE: CMI) today declared a quarterly common stock cash dividend of 78 cents per share, payable on December 1, 2014 to …

Cummins Inc. Declares Quarterly Common Stock Dividend
Tue, 14 Oct 2014 19:45:00 GMT
Marketwired – The Board of Directors of Cummins Inc. today declared a quarterly common stock cash dividend of 78 cents per share, payable on December 1, 2014 to shareholders of record on November 20, 2014.About CumminsCummins …

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Wed, 08 Oct 2014 15:34:00 GMT

Coverage initiated on Cummins by Stifel
Wed, 08 Oct 2014 10:52:52 GMT

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