Dollar Tree (DLTR) Offering Possible 5.26% Return Over the Next 11 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 $55.00 short put and a strike $50.00 long put offers a potential 5.26% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $55.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $50.00 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 62.05 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

Dollar General to take offer to Family Dollar investors
Wed, 10 Sep 2014 06:02:20 GMT
USA TODAY – Reports say Dollar General will takes its offer to shareholders after board rejection.

Dollar General Expected to Make Hostile Bid for Family Dollar
Wed, 10 Sep 2014 04:25:18 GMT
New York Times – The move, expected as early as Wednesday, would further complicate Family Dollar’s agreed deal to sell itself to Dollar Tree for $8.5 billion.

Exclusive: Dollar General to go hostile with $9.1 billion Family Dollar bid – sources
Wed, 10 Sep 2014 04:11:01 GMT

Dollar General Will Make Hostile Family Dollar Bid, Reuters Says
Wed, 10 Sep 2014 03:36:25 GMT
Bloomberg – Dollar General Corp. (DG) , spurned twice in its attempt to buy Family Dollar Stores Inc. (FDO), will take its $9.1 billion offer directly to shareholders in a hostile bid, Reuters reported. Dollar General could make a tender offer as soon as today, Reuters said, citing unidentified people familiar with the situation. The company’s latest offer of $80 a share was rejected last week by Family Dollar’s board, which cited antitrust hurdles. Family Dollar has accepted a lower bid from Dollar Tree Inc. (DLTR) instead, saying that deal will more easily gain regulatory clearance.

DOLLAR TREE INC Files SEC form 8-K, Other Events, Financial Statements and Exhibits
Tue, 09 Sep 2014 19:44:17 GMT

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