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 62.65 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

Options market sees little risk in Family Dollar deal
Mon, 08 Sep 2014 19:43:42 GMT
Reuters – Competing offers from rival discount chains has left the fate of Family Dollar Stores Inc up in the air, but options investors are currently treating its accepted offer from Dollar Tree Inc deal as a done …

Dollar General Ponders Next Step After Family Dollar Snub
Sat, 06 Sep 2014 04:01:00 GMT
Bloomberg – Dollar General Corp., spurned twice in its attempt to acquire Family Dollar Stores Inc. (FDO), is now plotting its next move. The company said yesterday that it remains committed to its $9.1 billion cash offer for Family Dollar and is working with financial adviser Goldman Sachs Group Inc. (GS) as it ponders its options. Earlier in the day, Family Dollar rejected the $80-a-share proposal, saying it would be harder to get past antitrust regulators than a lower offer from Dollar Tree Inc. (DLTR) Dollar General could now take its pitch directly to shareholders — something it threatened to do earlier this week if the bid was rejected again.

Dollar General’s Next Move After Family Dollar’s Rejection
Fri, 05 Sep 2014 20:57:40 GMT
New York Times – Family Dollar is setting up an argument that Dollar General can never satisfy the Family Dollar board. That may not be the case, Steven Davidoff Solomon writes in the Deal Professor column.

Family Dollar rejects latest bid from Dollar General
Fri, 05 Sep 2014 20:04:23 GMT
AFP – A Family Dollar store is seen on July 28, 2014 in Hollywood, Florida

Family Dollar Shares in Focus After Rejecting Dollar General Again
Fri, 05 Sep 2014 18:01:37 GMT
Zacks – Family Dollar (FDO) is in the news thanks to rejecting the $9.1 billion offer from Dollar General (DG).

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