Dollar Tree (DLTR) Offering Possible 8.7% Return Over the Next 12 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 8.7% return on risk over the next 12 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 $0.40 would be kept by the premium seller. The risk of $4.60 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 67.37 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

Rebound Possible for Retail ETFs
Mon, 09 Jun 2014 19:09:16 GMT

Family Dollar: “Significant Shareholder Value Can Be Created,” Guggenheim Says
Mon, 09 Jun 2014 19:03:00 GMT
Barrons.com – Family Dollar (FDO) became a must-have after Carl Icahn announced a 9.4% stake in the bargain retailer–and so did competitors like Dollar General (DG) and Dollar Tree (DLTR). Guggenheim's John Heinbockel and Steven Forbes explain why they're bullish on Family Dollar: Following Carl Icahn's disclosure of a 9% stake in FDO, we reiterate our contrarian BUY, believing that significant shareholder value can be created in this well-positioned but underperforming and overcapitalized business. Our focus remains on a turnaround, not consolidation… We would note that the 100 basis points plus of EBIT margin expansion we have built into our model represents the recovery of only 50% of the erosion seen since 2011 and would still leave a level of profitability well below that of both Dollar General (DG, BUY, $57.99) and Dollar Tree (DLTR, NC, $55.14).

Family Dollar Adopts Poison Pill After Icahn Stake
Mon, 09 Jun 2014 17:14:00 GMT

Billionaire Icahn shops for dollar store
Mon, 09 Jun 2014 15:49:00 GMT

Dollar stores rally after Icahn takes Family Dollar stake
Mon, 09 Jun 2014 14:18:19 GMT

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