Dow Chemical (DOW) Offering Possible 12.57% Return Over the Next 22 Calendar Days

Dow Chemical's most recent trend suggests a bearish bias. One trading opportunity on Dow Chemical is a Bear Call Spread using a strike $49.00 short call and a strike $55.00 long call offers a potential 12.57% 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 $49.00 by expiration. The full premium credit of $0.67 would be kept by the premium seller. The risk of $5.33 would be incurred if the stock rose above the $55.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Dow Chemical 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 Dow Chemical is bearish.

The RSI indicator is at 48.66 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 Dow Chemical

Final Glance: Chemicals companies
Thu, 24 Apr 2014 22:04:41 GMT

Final Glance: Chemicals companies
Thu, 24 Apr 2014 22:04:41 GMT
AP – Shares of some top chemicals companies were up at the close of trading: Dow Chemical Co. rose $.01 or percent, to $45.60. DuPont Co. rose $.49 or .8 percent, to $63.45.

Dow Chemical: An Attractive Dividend Stock
Thu, 24 Apr 2014 09:11:57 GMT

Stocks End Lower After Mixed Earnings, Data
Wed, 23 Apr 2014 20:20:00 GMT

Dow Chemical chief in talks over activist call to break-up group
Wed, 23 Apr 2014 19:09:44 GMT
Financial Times – Andrew Liveris, chief executive of Dow Chemical, has met activist investor Daniel Loeb “several times” to discuss the shareholder's call for a break-up of the group. Mr Liveris disclosed the …

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