Lowe’s Companies (LOW) Offering Possible 6.38% Return Over the Next 24 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 6.38% 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 $72.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 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 at 42.88 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 Lowe's Companies

Home Depot's 1Q15 Results Show Continued Operational Strength
Tue, 26 May 2015 13:50:53 GMT

The Conference Board Leading Economic Index Rises in April 2015
Mon, 25 May 2015 18:45:56 GMT

After Drop, Lowe's Stock Could Be a Buy
Sat, 23 May 2015 03:26:00 GMT

The Week Ahead: 3 Reasons to Put Stocks on Your Summer Shopping List
Fri, 22 May 2015 23:07:00 GMT

Here’s what CEOs said about the economy this week
Fri, 22 May 2015 14:59:35 GMT

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