Dow Chemical (DOW) Offering Possible 6.16% Return Over the Next 11 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 $50.50 short call and a strike $55.50 long call offers a potential 6.16% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $50.50 by expiration. The full premium credit of $0.29 would be kept by the premium seller. The risk of $4.71 would be incurred if the stock rose above the $55.50 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 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 Dow Chemical

Final Glance: Chemicals companies
Tue, 07 Oct 2014 22:59:59 GMT

Final Glance: Chemicals companies
Tue, 07 Oct 2014 22:59:59 GMT

DuPont investors enjoy positive capital returns
Mon, 06 Oct 2014 21:00:04 GMT

DuPont to grow advanced materials position
Mon, 06 Oct 2014 17:00:04 GMT

Dow Announces U.S. Apprenticeship Program
Mon, 06 Oct 2014 13:00:00 GMT
Business Wire – The Dow Chemical Company today announced that the Company will launch a U.S. Apprenticeship pilot program at various Dow sites across the nation in 2015. This pilot program supports a major initiative of the Advanced Manufacturing Partnership , a national effort to secure U.S.

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