Cummins (CMI) Offering Possible 6.95% Return Over the Next 29 Calendar Days

Cummins's most recent trend suggests a bearish bias. One trading opportunity on Cummins is a Bear Call Spread using a strike $105.00 short call and a strike $115.00 long call offers a potential 6.95% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $105.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $9.35 would be incurred if the stock rose above the $115.00 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 70.55 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

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Wed, 17 Feb 2016 22:58:36 GMT

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Wed, 17 Feb 2016 18:30:00 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

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

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