Gap (GPS) Offering Possible 13.87% Return Over the Next 31 Calendar Days

Gap's most recent trend suggests a bearish bias. One trading opportunity on Gap is a Bear Call Spread using a strike $24.50 short call and a strike $30.00 long call offers a potential 13.87% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $24.50 by expiration. The full premium credit of $0.67 would be kept by the premium seller. The risk of $4.83 would be incurred if the stock rose above the $30.00 long call strike price.

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

Jim Cramer's Top Takeaways: National Beverage, Gap Stores
Tue, 19 Apr 2016 10:00:00 GMT

Cramer: Biggest victim of mall shopping decline
Mon, 18 Apr 2016 23:03:34 GMT

Pepsi's Earnings Are Juiced by U.S. Consumer
Mon, 18 Apr 2016 14:51:00 GMT

Gap Website Loses 20% Of Audience
Sun, 17 Apr 2016 13:42:09 GMT

Gap May Be Poised for Comeback, Just as Old Navy Unravels
Fri, 15 Apr 2016 18:58:00 GMT

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