Dow Chemical Offering Possible 9.65% Return Over the Next 17 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 $40.00 short call and a strike $45.00 long call offers a potential 9.65% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $40.00 by expiration. The full premium credit of $0.44 would be kept by the premium seller. The risk of $4.56 would be incurred if the stock rose above the $45.00 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 at 39.78 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
Wed, 30 Oct 2013 22:03:16 GMT

Final Glance: Chemicals companies
Wed, 30 Oct 2013 22:03:16 GMT
AP – Shares of some top chemicals companies were down at the close of trading: Dow Chemical Co. fell $.20 or .5 percent, to $39.26. DuPont Co. fell $.46 or .7 percent, to $61.02.

Midday Glance: Chemicals companies
Wed, 30 Oct 2013 17:46:52 GMT

Midday Glance: Chemicals companies
Wed, 30 Oct 2013 17:46:52 GMT
AP – Shares of some top chemicals companies are mixed at 1 p.m.: Dow Chemical Co. rose $.06 or .2 percent, to $39.52. DuPont Co. fell $.23 or .4 percent, to $61.25.

Early Glance: Chemicals companies
Wed, 30 Oct 2013 14:40:40 GMT

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