Discover (DFS) Offering Possible 16.28% Return Over the Next 3 Calendar Days

Discover's most recent trend suggests a bullish bias. One trading opportunity on Discover is a Bull Put Spread using a strike $82.50 short put and a strike $77.50 long put offers a potential 16.28% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $82.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock dropped below the $77.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Discover is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Discover is bullish.

The RSI indicator is at 67.95 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

Over Half of Those Experiencing Financial Anxiety cite the Pandemic as a Primary Cause, Discover Personal Loans survey finds
Tue, 08 Dec 2020 11:30:00 +0000
Over Half of Those Experiencing Financial Anxiety cite the Pandemic as a Primary Cause, Discover Personal Loans survey finds

How Will Discover Financial (DFS) Fare This Holiday Season?
Fri, 27 Nov 2020 16:42:04 +0000
Rise in online sales this holiday season is likely to expand sales volumes for Discover Financial (DFS).

1-In-3 Consumers Plan to Spend Less This Upcoming Holiday Season
Tue, 24 Nov 2020 11:00:00 +0000
COVID-19 has pushed consumers more toward online shopping and contactless payments, according to Discover's annual Holiday Shopping survey.

P/E Ratio Insights for Discover Financial
Mon, 16 Nov 2020 16:23:31 +0000
Looking into the current session, Discover Financial Inc. (NYSE: DFS) shares are trading at $78.63, after a 2.64% increase. Moreover, over the past month, the stock spiked by 24.81%, but in the past year, decreased by 5.80%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. The stock is currently higher from its 52 week low by 238.19%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Consumer Finance stocks, and capitalize on the lower share price observed over the year. The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings. View more earnings on DFSMost often, an industry will prevail in a particular phase of a business cycle, than other industries. Discover Financial Inc. has a better P/E ratio of 23.5 than the aggregate P/E ratio of 14.18 of the Consumer Finance industry. Ideally, one might believe that Discover Financial Inc. might perform better in the future than it's industry group, but it's probable that the stock is overvalued. Price to earnings ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors can become unable to attain key insights from trailing earnings.See more from Benzinga * Click here for options trades from Benzinga * A Look Into Boston Properties Price Over Earnings * A Look Into Assured Guaranty's Price Over Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Do These 3 Checks Before Buying Discover Financial Services (NYSE:DFS) For Its Upcoming Dividend
Fri, 13 Nov 2020 10:57:55 +0000
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Discover…

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