Family Dollar (FDO) Offering Possible 8.7% Return Over the Next 9 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 $65.50 short put and a strike $60.50 long put offers a potential 8.7% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $65.50 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 dropped below the $60.50 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 above 80 which suggests that the stock is in overbought 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

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