Lowe’s Companies (LOW) Offering Possible 19.33% Return Over the Next 32 Calendar Days

Lowe's Companies's most recent trend suggests a bearish bias. One trading opportunity on Lowe's Companies is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 19.33% 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 $72.50 by expiration. The full premium credit of $0.81 would be kept by the premium seller. The risk of $4.19 would be incurred if the stock rose above the $77.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Lowe's Companies 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 Lowe's Companies 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 Lowe's Companies

How Do Dividends of Home Depot and Lowe’s Compare?
Fri, 16 Sep 2016 15:04:19 GMT

Better Buy: The Home Depot, Inc. vs. Lowe's
Fri, 16 Sep 2016 13:26:05 GMT

How Are Home Depot and Lowe’s Expanding Their Businesses?
Thu, 15 Sep 2016 15:04:49 GMT

Home Depot Outperforms Lowe’s in Same-Store Sales Growth
Thu, 15 Sep 2016 14:05:06 GMT

What Drove Lowe’s and Home Depot’s Revenue Growth in 2Q16?
Thu, 15 Sep 2016 12:05:22 GMT

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