Cummins (CMI) Offering Possible 23.46% Return Over the Next 9 Calendar Days

Cummins's most recent trend suggests a bearish bias. One trading opportunity on Cummins is a Bear Call Spread using a strike $136.00 short call and a strike $141.00 long call offers a potential 23.46% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $136.00 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $4.05 would be incurred if the stock rose above the $141.00 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 35.81 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
Sun, 08 Feb 2015 15:00:00 GMT
Marketwired – The Board of Directors of Cummins Inc. today declared a quarterly common stock cash dividend of 78 cents per share, payable on March 2, 2015 to shareholders of record on February 18, 2015.About CumminsCummins …

Quotes from this week's earnings calls
Fri, 06 Feb 2015 19:48:00 GMT

Cummins (CMI) Earnings Report: Q4 2014 Conference Call Transcript
Fri, 06 Feb 2015 17:39:00 GMT

Stock Pops & Drops: LB, PFE, IRBT & CMI
Thu, 05 Feb 2015 22:45:00 GMT

[$$] Cummins Beats Expectations, Cites China, U.S.
Thu, 05 Feb 2015 19:07:48 GMT

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