Emerson Electric (EMR) Offering Possible 8.7% Return Over the Next 32 Calendar Days

Emerson Electric's most recent trend suggests a bearish bias. One trading opportunity on Emerson Electric is a Bear Call Spread using a strike $62.50 short call and a strike $67.50 long call offers a potential 8.7% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $67.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Emerson Electric 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 Emerson Electric is bearish.

The RSI indicator is at 24.63 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 Emerson Electric

Emerson To Sell Power Transmission Unit
Mon, 15 Dec 2014 16:20:00 GMT

Emerson Sells Power Transmission Business for $1.4 Billion
Mon, 15 Dec 2014 15:37:00 GMT

Emerson Electric (EMR) Stock Surges Today Following Sale of Power Transmission Unit
Mon, 15 Dec 2014 14:36:00 GMT

Emerson Electric to sell power transmission solutions unit for $1.4 billion
Mon, 15 Dec 2014 13:32:23 GMT

Emerson to sell power transmission business to Regal Beloit
Mon, 15 Dec 2014 13:25:43 GMT
Reuters – Emerson Electric Co said it would sell its power transmission unit to Regal Beloit Corp, a maker of electric motors, for $1.44 billion as it streamlines its business. Regal Beloit's shares rose 6 percent …

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