Cummins (CMI) Offering Possible 40.85% Return Over the Next 26 Calendar Days

Cummins's most recent trend suggests a bullish bias. One trading opportunity on Cummins is a Bull Put Spread using a strike $134.00 short put and a strike $129.00 long put offers a potential 40.85% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $134.00 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock dropped below the $129.00 long put 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 58.73 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

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Mon, 20 Oct 2014 13:08:18 GMT
Marketwired – Cummins Inc. has a long history of supporting education initiatives in the communities where it operates and is now making efforts to strengthen technical education across the world. The Company recently …

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