Gap Offering Possible 8.7% Return Over the Next 32 Calendar Days

Gap's most recent trend suggests a bearish bias. One trading opportunity on Gap is a Bear Call Spread using a strike $40.00 short call and a strike $45.00 long call offers a potential 8.7% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $40.00 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 rose above the $45.00 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 at 23.6 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 Gap

Is Express' 20% Drop a Buying Opportunity?
Tue, 17 Dec 2013 19:00:14 GMT
Motley Fool – Despite a 20% drop, Express is not a good buy with inventories that have risen significantly. Gap and Guess? are much better choices.

Filling ‘The Gap' In Your Portfolio
Tue, 17 Dec 2013 16:53:00 GMT
Forbes – With the holiday season upon us, many of you might be moving from retailer to retailer shopping for solid deals. In congruence with this behavior, you might also be looking for investment deals as well. Presently it appears as though Gap Inc. (GPS) might fit both criterions. First, with over 3,500 […]

How to calculate targets when the gravy is in the gap
Tue, 17 Dec 2013 13:39:00 GMT
MrTopStep.com – Traders will often use the phrase “gravy in the gap” when the market is a runaway train during overnight and premarket trading, only to trade in an otherwise small price range during the actual floor session after the open. Here’s a simple technique that I use for forecasting accurate price targets (over 90%!) when this occurs. Monday’s ADR targets I’m a fan of using average daily range (ADR) for forecasting targets.

Newscast: Wall Street ready to gain more ground
Tue, 17 Dec 2013 12:33:53 GMT
MarketWatch – Online retailers post double-digit gains in holiday sales. MarketWatch's Ann Cates reports.

Easy Money Delays Retailing Shakeout
Tue, 17 Dec 2013 06:07:34 GMT
The Wall Street Journal – Investors, desperate for higher returns, are eagerly lending to risky borrowers, buying the chains time to try to turn around their businesses in the face of weak sales and fierce competition. But what's …

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