Dollar Tree (DLTR) Offering Possible 11.11% Return Over the Next 7 Calendar Days

Dollar Tree's most recent trend suggests a bullish bias. One trading opportunity on Dollar Tree is a Bull Put Spread using a strike $82.00 short put and a strike $75.00 long put offers a potential 11.11% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $82.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $6.30 would be incurred if the stock dropped below the $75.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Dollar Tree 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 Dollar Tree is bullish.

The RSI indicator is at 35.99 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 Dollar Tree

Should You Avoid Dollar Tree, Inc. (DLTR)?
Thu, 12 Mar 2020 01:44:12 +0000
Coronavirus is probably the 1 concern in investors’ minds right now. It should be. On February 27th we publish an article with the title "Recession is Imminent: We Need A Travel Ban NOW". We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]

6 Stocks With Low Price-Sales Ratios
Wed, 11 Mar 2020 19:28:26 +0000
Dollar Tree makes the list Continue reading…

Dollar Store Investors See Green in a Sea of Red This Week
Wed, 11 Mar 2020 19:06:00 +0000
(Bloomberg) — Dollar Tree Inc. and Dollar General Corp. are among the best performers so far this week in the broadly negative S&P 500 Index as fears escalate that the U.S. economy could be slipping into a coronavirus-driven recession.“In general, dollar stores execute better in a recession,” Loop Capital analyst Anthony Chukumba said Wednesday in a phone interview. Consumers tend to “trade down from higher-priced alternatives” like grocery stores, pharmacies, and even discount retailers such as Walmart Inc. and Target Corp., because they tend to make smaller purchases, he said.Chukumba favors Dollar General, which gets the vast majority of its sales from consumables. He rates the stock a buy. He has a sell rating on Dollar Tree, which has faced challenges integrating the Family Dollar chain it bought in 2015. Dollar General reports fourth-quarter results Thursday morning.The chance of a U.S. recession within the next 12 months has surged to the highest reading since the country exited the last downturn in 2009, according to a Bloomberg Economics model.Morgan Stanley analyst Simeon Gutman wrote earlier this week that discount/dollar stores are among retail segments “least vulnerable” to an economic slowdown. Comparable-store sales — a key retail metric — for discount/dollar stores have had a negative correlation to changes in gross domestic product growth since 1992, he said. According to U.S. Census retail sales for the same period, grocery and auto parts have 0.20 and 0.44 correlations, respectively. “Logically, retailers in these segments should have the lowest earnings sensitivities to any slowdown in GDP growth.”In addition, dollar stores have been benefiting from panic buying caused by coronavirus fears, Bloomberg Intelligence analyst Jennifer Bartashus wrote in an email. “Many shoppers at these stores are hourly workers, so there may be some fear of lost wages on the horizon.”Only a handful of stocks in the S&P 500 are in positive territory this week. Dollar Tree shares are up more 5%, after hitting a two-year low on Thursday, while Dollar General has gained less than 1%. Auto parts retailers O’Reilly Automotive Inc., Autozone Inc. and Genuine Parts Co. have also outperformed.To contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Lisa WolfsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Just 10 S&P 500 stocks are higher, including Cabot Oil, Walmart and AutoZone
Mon, 09 Mar 2020 15:30:00 +0000
Just 10 S&P 500 stocks were trading higher on Monday, as benchmark indexes sold off in response to an oil price war between Russia and Saudi Arabia. The biggest gainer was Cabot Oil & Gas Corp. after Cowen analysts said the " best-in-class gassy name" should be favored in the current selloff. The stock was up 11.4% in morning trade. Three car parts makers were higher, after Credit Suisse said that sector had the least exposure to supply chain disruption in China, given "slow turns, and adequate inventory position currently. Biggest risk seems to be late Spring shipments, and some seasonal categories within that," analysts wrote in a Monday note. "Bigger concerns would be demand recently, but stocks seem to be reflecting concerns, having lagged in recent months.' AutoZone Inc. stock was up 3%, O'Reilly Automotive Inc. was up 2.6% and Advance Auto Parts Inc. was up 1.2%. The other gainers were Walmart Inc. , up 2%, Dollar Tree Inc. , up 1.4%, Twitter Inc. , up 1%, H&R Block Inc. , up 1%, Clorox Co. , up 0.9% and Dollar General Corp. , up 0.7%.

Dollar Tree: The Pressure Mounts
Sun, 08 Mar 2020 21:09:54 +0000
A look at the company's 2019 results Continue reading…

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