Discover (DFS) Offering Possible 11.11% Return Over the Next 32 Calendar Days

Discover's most recent trend suggests a bearish bias. One trading opportunity on Discover is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 11.11% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $62.50 long call strike price.

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

The RSI indicator is at 43.23 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 Discover

Final Glance: Credit Card companies
Tue, 15 Apr 2014 22:02:08 GMT

Final Glance: Credit Card companies
Tue, 15 Apr 2014 22:02:08 GMT
AP – Shares of some top credit card companies were up at the close of trading: American Express Co. rose $.54 or .6 percent, to $86.04. Capital One Financial Corp. rose $.46 or .6 percent, to $74.52. Discover …

Midday Glance: Credit Card companies
Tue, 15 Apr 2014 17:55:00 GMT
AP – Shares of some top credit card companies are mixed at 1 p.m.: American Express Co. fell $.09 or .1 percent, to $86.51. Capital One Financial Corp. rose $.29 or .4 percent, to $75.84. Discover Financial …

Early Glance: Credit Card companies
Tue, 15 Apr 2014 15:38:03 GMT

Early Glance: Credit Card companies
Tue, 15 Apr 2014 15:38:03 GMT
AP – Shares of some top credit card companies are mixed at 10 a.m.: American Express Co. fell $.46 or .5 percent, to $84.08. Capital One Financial Corp. fell $.03 or percent, to $74.01. Discover Financial Services …

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