Diamond Offshore (DO) Offering Possible 16.01% Return Over the Next 16 Calendar Days

Diamond Offshore's most recent trend suggests a bearish bias. One trading opportunity on Diamond Offshore is a Bear Call Spread using a strike $35.00 short call and a strike $40.00 long call offers a potential 16.01% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $35.00 by expiration. The full premium credit of $0.69 would be kept by the premium seller. The risk of $4.31 would be incurred if the stock rose above the $40.00 long call strike price.

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

The RSI indicator is at 21.97 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 Diamond Offshore

NYSE stocks posting largest percentage increases
Thu, 02 Oct 2014 22:02:32 GMT
AP – A look at the 10 biggest percentage gainers on New York Stock Exchange at 1 p.m.: Athlon Energy Inc. rose 24.7 percent to $58.27. NiSource Inc. rose 6.8 percent to $41.19. Smart & Final Strs rose 6.5 percent …

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Transocean at 52-Week Low on Weak Offshore Drilling Market
Mon, 29 Sep 2014 17:25:02 GMT

Offshore Drillers ‘Continuing to Die by 1,000 Cuts'
Mon, 29 Sep 2014 15:16:00 GMT

Global offshore drilling market suffers after fall in demand from oil companies
Fri, 26 Sep 2014 00:00:00 GMT

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