Dow Chemical (DOW) Offering Possible 8.93% Return Over the Next 19 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 $53.00 short put and a strike $48.00 long put offers a potential 8.93% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $53.00 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock dropped below the $48.00 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 above 80 which suggests that the stock is in overbought 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
Mon, 28 Jul 2014 22:04:57 GMT

Final Glance: Chemicals companies
Mon, 28 Jul 2014 22:04:57 GMT

Celebrating Dow's “Human Element At Work” in a New Company Advertising Campaign
Mon, 28 Jul 2014 16:06:40 GMT
noodls – Reinforcing Dow's (NYSE: DOW) commitment to scientific solutions that fulfill a human purpose, the company is launching a new campaign that celebrates its people at the “Human Element at Work”. …

Early Glance: Chemicals companies
Mon, 28 Jul 2014 14:33:09 GMT

Dow assets underappreciated, shares could rise more -Barron's
Sun, 27 Jul 2014 19:43:12 GMT

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