Dow Chemical Offering Possible 6.61% Return Over the Next 10 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 $44.00 short call and a strike $49.00 long call offers a potential 6.61% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $44.00 by expiration. The full premium credit of $0.31 would be kept by the premium seller. The risk of $4.69 would be incurred if the stock rose above the $49.00 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 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

Dow Champions Innovative Energy Solutions for Auto Industry at NAIAS
Thu, 09 Jan 2014 01:44:35 GMT
noodls – “Electric Avenue” Sponsorship Reinforces Significant Role of Chemistry in Meeting Next Generation The Dow Chemical Company (NYSE: DOW) is front and center at this year's North American International …

Boeing, manufacturers press U.S. IRS on R&D tax rule changes
Wed, 08 Jan 2014 23:55:05 GMT
Reuters – Boeing Co and other manufacturers asked the U.S. Internal Revenue Service on Wednesday to scrap parts of a proposed rewrite of the federal tax deduction for corporate research and development that they …

Final Glance: Chemicals companies
Wed, 08 Jan 2014 23:15:11 GMT

Final Glance: Chemicals companies
Wed, 08 Jan 2014 23:15:11 GMT
AP – Shares of some top chemicals companies were up at the close of trading: Dow Chemical Co. rose $.05 or .1 percent, to $43.16. DuPont Co. rose $.80 or 1.3 percent, to $63.13.

Midday Glance: Chemicals companies
Wed, 08 Jan 2014 18:31:55 GMT

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