Lowe’s Companies (LOW) Offering Possible 8.46% Return Over the Next 11 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 8.46% return on risk over the next 11 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 $0.39 would be kept by the premium seller. The risk of $4.61 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 35.12 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

Lowe's has pulled a line of flooring that a blogger claimed had toxic levels of formaldehyde
Mon, 04 May 2015 14:11:00 GMT

Lowe's halting sales of Chinese-made flooring
Fri, 01 May 2015 21:36:27 GMT

Lowe’s halts sale of laminate after report alleging similar issue to Lumber Liquidators
Fri, 01 May 2015 20:33:59 GMT

Lowe's Shrugs Off Negative Seeking Alpha Article
Fri, 01 May 2015 15:35:49 GMT

Traders bet lows are coming for Lowe's
Fri, 01 May 2015 15:15:13 GMT

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