Cummins (CMI) Offering Possible 20.48% Return Over the Next 28 Calendar Days

Cummins's most recent trend suggests a bearish bias. One trading opportunity on Cummins is a Bear Call Spread using a strike $100.00 short call and a strike $110.00 long call offers a potential 20.48% 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 $100.00 by expiration. The full premium credit of $1.70 would be kept by the premium seller. The risk of $8.30 would be incurred if the stock rose above the $110.00 long call strike price.

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

The RSI indicator is at 67.94 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 Financials
Thu, 18 Feb 2016 18:04:22 GMT

10 High-Quality Dividend Stocks Down 20% or More to Buy Now
Thu, 18 Feb 2016 12:47:00 GMT

Sterne Agee Downgrades BorgWarner Rating to ‘Neutral’
Wed, 17 Feb 2016 22:58:36 GMT

Cummins Reorganizing Kent Operations to Improve Efficiencies
Tue, 16 Feb 2016 12:30:00 GMT
Business Wire – COLUMBUS, Ind.–(BUSINESSWIRE)– Cummins Inc. (NYSE: CMI) today announced that the company is reorganizing its manufacturing operations, as part of its plan to adjust to weak global demand for power generation …

Cummins Reorganizing Kent Operations to Improve Efficiencies
Tue, 16 Feb 2016 12:30:00 GMT

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