Dow Chemical Offering Possible 10.86% Return Over the Next 16 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 $49.00 short put and a strike $44.00 long put offers a potential 10.86% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $49.00 by expiration. The full premium credit of $0.49 would be kept by the premium seller. The risk of $4.51 would be incurred if the stock dropped below the $44.00 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
Thu, 06 Mar 2014 23:07:27 GMT

Final Glance: Chemicals companies
Thu, 06 Mar 2014 23:07:27 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 Builds New R&D Facility in Texas
Thu, 06 Mar 2014 21:42:21 GMT

Credit Suisse Adds Four New Stocks to Its Top Picks List
Thu, 06 Mar 2014 13:25:19 GMT

Is It Time for Starbucks to Stop Milking GMOs?
Thu, 06 Mar 2014 02:05:56 GMT

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