Family Dollar Offering Possible 9.89% Return Over the Next 18 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 $62.50 short call and a strike $67.50 long call offers a potential 9.89% return on risk over the next 18 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 $0.45 would be kept by the premium seller. The risk of $4.55 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 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 below 20 which suggests that the stock is in oversold 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

LATEST NEWS for Family Dollar

Is Family Dollar in Trouble for 2014?
Tue, 04 Feb 2014 21:03:48 GMT
Motley Fool – Same-store sales are declining rapidly, and the COO conveniently “departed” on the same day as the earnings call. What's going on at Family Dollar?

The Middle Class Is Steadily Eroding. Just Ask the Business World.
Mon, 03 Feb 2014 01:31:17 GMT
New York Times – The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

Should These 2 Stocks Be Raising Their Dividends?
Sat, 01 Feb 2014 14:16:27 GMT

Consumer spending split between haves, have nots
Fri, 31 Jan 2014 19:55:52 GMT

Vapor Corp – It's Smoking
Thu, 30 Jan 2014 00:07:47 GMT

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