Family Dollar (FDO) Offering Possible 5.26% Return Over the Next 30 Calendar Days

Family Dollar's most recent trend suggests a bullish bias. One trading opportunity on Family Dollar is a Bull Put Spread using a strike $77.50 short put and a strike $72.50 long put offers a potential 5.26% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $77.50 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 dropped below the $72.50 long put strike price.

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

The RSI indicator is at 70.05 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

Chukumba, Yarbrough on Dollar-Store Takeover Clash (Audio)
Fri, 22 Aug 2014 11:02:58 GMT

We’ll Be Back Monday, Unless We Decide Against It: Opening Line
Fri, 22 Aug 2014 10:00:19 GMT

PRESS DIGEST- New York Times business news – Aug 22
Fri, 22 Aug 2014 05:13:34 GMT
Reuters – The following are the top stories on the New York Times business pages. * Sears Holdings Corp, which owns Sears and Kmart stores, announced on Thursday that it lost $975 million in the first six months of the year.

Family Dollar Rejects Dollar General's Takeover Bid
Fri, 22 Aug 2014 03:47:59 GMT
The Wall Street Journal – Family Dollar rejected Dollar General's $9 billion cash offer, opting to stick with Dollar Tree's $8.5 billion cash-and-stock deal that is worth less but may have an easier time passing muster with antitrust …

Did UPS Breach Expose Customer Data?
Thu, 21 Aug 2014 22:16:22 GMT

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