Family Dollar (FDO) Offering Possible 5.26% Return Over the Next 16 Calendar Days

Family Dollar's most recent trend suggests a bearish bias. One trading opportunity on Family Dollar is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 5.26% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock rose above the $75.00 long call strike price.

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

The RSI indicator is at 44.04 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 Family Dollar

Is Dollar General's CEO Worth $1.3 Billion?
Sat, 05 Jul 2014 13:08:13 GMT

3 Large U.S. Corporations Set To Publish Earnings The Week Of July The 7th
Fri, 04 Jul 2014 10:12:29 GMT

Family Dollar To Report Q3 As Merger Talk Softens
Thu, 03 Jul 2014 23:08:00 GMT

Family Dollar Stores to Host Third Quarter 2014 Earnings Conference Call
Thu, 03 Jul 2014 20:05:00 GMT
Business Wire – Family Dollar Stores, Inc. , a discount store chain operating more than 8,200 stores in 46 states, will host a conference call for investors and analysts to discuss fina

This will either make stock rally sizzle or snap
Thu, 03 Jul 2014 19:46:50 GMT

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