Dollar Tree (DLTR) Offering Possible 14.94% Return Over the Next 31 Calendar Days

Dollar Tree's most recent trend suggests a bearish bias. One trading opportunity on Dollar Tree is a Bear Call Spread using a strike $95.00 short call and a strike $100.00 long call offers a potential 14.94% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $95.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock rose above the $100.00 long call strike price.

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

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

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

Why This Dollar Store Should Be on Your Radar
Mon, 13 Jun 2016 18:02:00 GMT

Jim Cramer — Amazon Gains Traction as Retailers Struggle
Mon, 13 Jun 2016 17:10:00 GMT

DOLLAR TREE INC Files SEC form 10-Q, Quarterly Report
Thu, 09 Jun 2016 13:31:20 GMT

Why Walmart Will Never Be a Dollar Store
Tue, 07 Jun 2016 17:45:00 GMT

Why Dollar Tree Inc. Jumped 12% in May
Mon, 06 Jun 2016 12:45:00 GMT

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