Discover (DFS) Offering Possible 6.38% Return Over the Next 16 Calendar Days

Discover's most recent trend suggests a bearish bias. One trading opportunity on Discover is a Bear Call Spread using a strike $65.50 short call and a strike $70.50 long call offers a potential 6.38% 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 $65.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $70.50 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 46.96 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
Thu, 04 Dec 2014 23:03:06 GMT

Final Glance: Credit Card companies
Thu, 04 Dec 2014 23:03:06 GMT
AP – Shares of some top credit card companies were mixed at the close of trading: American Express Co. rose $.58 or .6 percent, to $91.83. Capital One Financial Corp. fell $.09 or .1 percent, to $82.09. Discover …

Midday Glance: Credit Card companies
Thu, 04 Dec 2014 18:41:29 GMT

Midday Glance: Credit Card companies
Thu, 04 Dec 2014 18:41:29 GMT
AP – Shares of some top credit card companies are mixed at 1 p.m.: American Express Co. rose $.46 or .5 percent, to $91.71. Capital One Financial Corp. fell $.34 or .4 percent, to $81.84. Discover Financial …

Early Glance: Credit Card companies
Thu, 04 Dec 2014 16:07:45 GMT

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