Kraft Foods (KRFT) Offering Possible 12.36% Return Over the Next 17 Calendar Days

Kraft Foods's most recent trend suggests a bearish bias. One trading opportunity on Kraft Foods is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 12.36% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $62.50 long call strike price.

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

The RSI indicator is at 31.97 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 Kraft Foods

U.S. Index Futures Slide as Whole Foods, Kraft Decline
Thu, 31 Jul 2014 10:04:44 GMT

Kraft Misses Q2 Estimates on Rising Meat and Diary Costs
Wed, 30 Jul 2014 21:30:30 GMT

After-hours buzz: WFM, YELP, WTW & more
Wed, 30 Jul 2014 21:23:45 GMT

[$$] Kraft Foods Group Profit Tumbles
Wed, 30 Jul 2014 21:09:04 GMT

Yelp jumps in after hours on unexpected profit
Wed, 30 Jul 2014 20:56:14 GMT

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