Dollar Tree Offering Possible 6.38% Return Over the Next 17 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 $55.00 short call and a strike $60.00 long call offers a potential 6.38% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $55.00 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 rose above the $60.00 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 at 65.81 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

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Dollar Tree's CEO Discusses Q4 2013 Results – Earnings Call Transcript
Wed, 26 Feb 2014 20:27:07 GMT
Seeking Alpha – Bob Sasser Thanks, Tim and good morning, everyone. This morning, we announced results for the fourth quarter of 2013. Our comp store sales increased 1.2% as a result of equal growth in both traffic and …

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