Illinois Tool (ITW) Offering Possible 9.89% Return Over the Next 24 Calendar Days

Illinois Tool's most recent trend suggests a bearish bias. One trading opportunity on Illinois Tool is a Bear Call Spread using a strike $85.00 short call and a strike $90.00 long call offers a potential 9.89% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $85.00 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 $90.00 long call strike price.

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

ILLINOIS TOOL WORKS INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
Mon, 25 Jan 2016 14:28:10 GMT

ITW to Acquire ZF TRW Engineered Fasteners and Components Business
Mon, 25 Jan 2016 14:15:00 GMT
GlobeNewswire – GLENVIEW, Ill., Jan. 25, 2016– Illinois Tool Works Inc. today announced that it has reached a definitive agreement to acquire the Engineered Fasteners and Components business from ZF TRW for approximately …

9:15 am Illinois Tool to acquire the Engineered Fasteners and Components business (EF&C) from ZF TRW for ~$450 mln, accretive to earnings in first 12 months
Mon, 25 Jan 2016 14:15:00 GMT

Why Citigroup Wants Investors in Top Conglomerates Now
Thu, 21 Jan 2016 17:10:54 GMT

Industrials: Go Big or Go Home
Thu, 21 Jan 2016 16:25:00 GMT

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