Discover (DFS) Offering Possible 13.64% Return Over the Next 40 Calendar Days

Discover's most recent trend suggests a bearish bias. One trading opportunity on Discover is a Bear Call Spread using a strike $65.00 short call and a strike $70.00 long call offers a potential 13.64% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $65.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $70.00 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 38.54 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

A Little Less Wiggle Can Go A Long Way
Mon, 12 Jan 2015 15:27:00 GMT

Discover Financial Services Announces Fourth Quarter 2014 Earnings Release and Conference Call
Mon, 05 Jan 2015 14:01:48 GMT
noodls – RIVERWOODS, Ill.–(BUSINESS WIRE)–Jan. 5, 2015– (NYSE: DFS) plans to report its fourth quarter 2014 results after the market closes on Wednesday, January 21, 2015. The earnings release will be available …

Discover Financial Services Announces Fourth Quarter 2014 Earnings Release and Conference Call
Mon, 05 Jan 2015 13:30:00 GMT
Business Wire – Discover Financial Services plans to report its fourth quarter 2014 results after the market closes on Wednesday, January 21, 2015. The earnings release will be availab

Citigroup to `Significantly' Raise Dividend in 2015: Oja
Wed, 31 Dec 2014 20:25:48 GMT

Pro says ‘patient money, smart money' in energy
Thu, 18 Dec 2014 20:04:00 GMT

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