Gamestop (GME) Offering Possible 7.07% Return Over the Next 8 Calendar Days

Gamestop's most recent trend suggests a bearish bias. One trading opportunity on Gamestop is a Bear Call Spread using a strike $37.50 short call and a strike $42.50 long call offers a potential 7.07% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $37.50 by expiration. The full premium credit of $0.33 would be kept by the premium seller. The risk of $4.67 would be incurred if the stock rose above the $42.50 long call strike price.

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

The RSI indicator is at 32.12 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 Gamestop

Electronic Arts Declares War on GameStop
Sun, 11 May 2014 21:06:03 GMT
Motley Fool – Electronic Arts is dreaming of a day when all games are downloaded — if it succeeds, it could make life for GameStop quite difficult.

GameStop Corp. Announces First Quarter 2014 Earnings Release Date and Conference Call Webcast
Thu, 08 May 2014 13:00:00 GMT
Business Wire – GameStop Corp. , today announced that the company will report earnings results after the market closes on Thursday, May 22, 2014 for its first quarter ended May 3, 2014.

GameStop slides after video game leaders report strong digital sales
Wed, 07 May 2014 16:51:27 GMT
theflyonthewall.com – GameStop slides after video game leaders report strong digital sales

Pier 1, Restoration Hardware Will Heat Up With Weather
Tue, 06 May 2014 18:41:30 GMT

EA makes $1.6 billion on sports games
Tue, 06 May 2014 18:26:00 GMT
CNBC – CNBC's Josh Lipton provides a preview of Electronic Arts and Activision's earnings expected after today's closing bell.

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