Dow Chemical (DOW) Offering Possible 5.71% Return Over the Next 9 Calendar Days

Dow Chemical's most recent trend suggests a bullish bias. One trading opportunity on Dow Chemical is a Bull Put Spread using a strike $50.50 short put and a strike $45.50 long put offers a potential 5.71% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $50.50 by expiration. The full premium credit of $0.27 would be kept by the premium seller. The risk of $4.73 would be incurred if the stock dropped below the $45.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Dow Chemical is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Dow Chemical is bullish.

The RSI indicator is at 47.35 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, 07 Aug 2014 22:13:52 GMT

Final Glance: Chemicals companies
Thu, 07 Aug 2014 22:13:52 GMT

Dow Solar to Expand POWERHOUSE in Delaware, Hawaii
Thu, 07 Aug 2014 20:30:05 GMT

Europe likely to make stocks whipsaw Thursday
Wed, 06 Aug 2014 22:32:43 GMT

USDA leaning toward approval of Monsanto's new GMO beans, cotton
Wed, 06 Aug 2014 19:15:44 GMT
Reuters – U.S. regulators on Tuesday said they are leaning toward approval of a new line of herbicide-tolerant crops developed by Monsanto Co even though they could increase problematic weed resistance for farmers. Under the draft “environmental impact statement” (EIS) by the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS), the agency said its analysis shows the new genetically modified cotton and soybean plants should be approved. St. Louis-based Monsanto, said the APHIS move was “a noteworthy sign of progress.” “It is an important step in the regulatory process and we are encouraging farmers to urge APHIS to complete this action as soon as possible,” Michelle Vigna, Monsanto's product manager, said in a statement.

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