Dollar Tree Offering Possible 5.26% Return Over the Next 22 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 $52.50 short call and a strike $57.50 long call offers a potential 5.26% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 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 $57.50 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

Target vs. Wal-Mart: A Race to the Express Lane
Tue, 28 Jan 2014 23:00:32 GMT

Can This Dollar Store Turn on a Dime?
Wed, 22 Jan 2014 17:16:11 GMT

Analysts' Actions: DLTR JNPR ORCL RHT VZ
Wed, 22 Jan 2014 13:28:00 GMT

Dollar Tree Initiated at Neutral
Tue, 21 Jan 2014 23:25:03 GMT

Dollar Tree: Worth 54 Ones?
Tue, 21 Jan 2014 09:25:16 GMT

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