Dollar Tree (DLTR) Offering Possible 6.38% Return Over the Next 18 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 $57.50 short put and a strike $52.50 long put offers a potential 6.38% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $57.50 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 dropped below the $52.50 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 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

Dealpolitik: Dollar General Playbook for the Final Family Dollar Showdown
Mon, 03 Nov 2014 22:28:08 GMT
The Wall Street Journal – The fight between Dollar Tree Inc. and Dollar General Corp. to buy Family Dollar Stores Inc. looks like it is headed for its final act.

Dollar General extends hostile bid for Family Dollar
Fri, 31 Oct 2014 18:37:14 GMT
AFP – People are seen outside the official opening of the North Arlington Dollar General Store on September 12, 2009, New Jersey

Dollar General extends tender offer for Family Dollar shares again
Fri, 31 Oct 2014 17:53:26 GMT

Dollar General Once Again Extends Family Dollar Tender Offer
Fri, 31 Oct 2014 14:22:00 GMT

Dollar General Takes Its Offer to Family Dollar Shareholders
Fri, 31 Oct 2014 13:50:49 GMT
24/7 Wall St. – The battle over which company will acquire Family Dollar Stores has shifted from competing offers to a proxy fight that will be decided at Family Dollar's annual meeting.

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