Dollar Tree Offering Possible 6.38% Return Over the Next 36 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 6.38% return on risk over the next 36 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 $0.30 would be kept by the premium seller. The risk of $4.70 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 at 20.42 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Dollar Tree

Why You Might Want to Bail on Family Dollar
Sat, 18 Jan 2014 12:03:00 GMT
Motley Fool – While dollar stores like Dollar General and Dollar Tree Stores rack up sales growth, Family Dollar Stores is quickly falling behind.

Suvretta cites big gains with J.C. Penney short, consumer stocks
Thu, 16 Jan 2014 20:27:46 GMT
Reuters – Suvretta Capital Management, founded by a former portfolio manager for billionaire investors George Soros and Steven A. Cohen, told clients on Thursday that its bet against shares of J.C. Penney Company …

Smaller Stores Report Higher Same-Store Sales Growth than Big Box Retailers
Thu, 16 Jan 2014 20:20:09 GMT
Motley Fool – Tuesday Morning, Dollar General, Dollar Tree and Family Dollar have reported better same-store sales numbers than Wal-Mart, Target and Big Lots. Is there something wrong with the large-box format?

Five Below: Does Growth Support Its Valuation?
Thu, 16 Jan 2014 18:14:06 GMT
Motley Fool – Many thought that Five Below would become the next Dollar Tree, priced with sky-high expectations — much like Michael Kors. Given its recent fundamental declines, however, the company might still have …

Are These Better Times for Discount or for Upscale Retailers?
Tue, 14 Jan 2014 20:54:08 GMT
Motley Fool – As economic uncertainty, particularly sluggish employment growth, continues to be a concern to retailers, those serving very different customer segments such as Dollar Tree, Target, and Tiffany are experiencing …

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