Diamond Offshore Offering Possible 8.93% Return Over the Next 12 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 $47.50 short call and a strike $52.50 long call offers a potential 8.93% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $47.50 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock rose above the $52.50 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 below 20 which suggests that the stock is in oversold territory.

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

The Diamond Offshore history: weak financial performance
Mon, 10 Feb 2014 21:00:21 GMT

Diamond Offshore’s backlog: The strengths and weaknesses
Mon, 10 Feb 2014 17:00:16 GMT

Boardwalk Pipeline Partners Springs a Leak
Mon, 10 Feb 2014 15:34:00 GMT

FBR Capital Markets Upgrades Diamond Offshore (DO)
Mon, 10 Feb 2014 14:25:00 GMT

Loews Corporation Reports Net Income Of $595 Million For 2013 As Compared To $568 Million In 2012
Mon, 10 Feb 2014 14:14:47 GMT
noodls – NEW YORK, Feb. 10, 2014 /PRNewswire/ — Loews Corporation (NYSE:L) today reported net income for 2013 of $595 million, or $1.53 per share, compared to $568 million, or $1.43 per share, in 2012. For the …

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