Dollar Tree Offering Possible 5.26% Return Over the Next 19 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 $57.50 short call and a strike $62.50 long call offers a potential 5.26% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 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 rose above the $62.50 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 below 20 which suggests that the stock is in oversold 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

Discount retailers get nice lift
Fri, 29 Nov 2013 14:39:00 GMT
CNBC – CNBC's Sheila Dharmarajan reports from the Nasdaq on discount retailers and momentum stocks Tesla and Netflix.

DOLLAR TREE INC Financials
Wed, 27 Nov 2013 18:04:12 GMT

Children's hospital reaches out to parents, too
Tue, 26 Nov 2013 22:58:36 GMT
USA TODAY – Treating the parents is key to children's health, even when shelter is the big issue

Retail Sales Pop With Early Deals Before Black Friday
Tue, 26 Nov 2013 19:12:00 GMT
Investor's Business Daily – Retail Sales Pop With Early Deals Before Black Friday

Did Dollar Tree Shareholders Get an Early Stocking Stuffer?
Tue, 26 Nov 2013 16:23:59 GMT
Motley Fool – Dollar Tree executives seem more upbeat than ever about the retailer’s prospects. How are things shaping up for the chain, and how does it stack up to Family Dollar and Dollar General?

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