Fastenal Offering Possible 6.56% Return Over the Next 23 Calendar Days

Fastenal's most recent trend suggests a bearish bias. One trading opportunity on Fastenal is a Bear Call Spread using a strike $46.00 short call and a strike $52.50 long call offers a potential 6.56% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $46.00 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $6.10 would be incurred if the stock rose above the $52.50 long call strike price.

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

The RSI indicator is at 38.54 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 Fastenal

Weakness Seen in Fastenal (FAST): Stock Drops 5.2%
Mon, 27 Jan 2014 11:34:02 GMT

Grainger Q4 Profit Falls Short, 2014 Guidance Trimmed
Fri, 24 Jan 2014 17:10:00 GMT

Global slowdown scare sends stocks into tailspin
Thu, 23 Jan 2014 19:37:15 GMT
CNBC – Fears of a China-led slowdown, softer U.S. data and mixed earnings news unleashed a selling wave that pushed stocks to their worst losses of the year.

Is Wall Street too bullish on the stock market?
Wed, 22 Jan 2014 20:23:26 GMT
CNBC – The adage “As January goes, so goes the year” has created concern among traders who see the seesaws of 2014 as a negative.

Is It Time to Buy Industrial Supply Companies?
Tue, 21 Jan 2014 17:44:14 GMT

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