Macy’s Offering Possible 8.93% Return Over the Next 10 Calendar Days

Macy's's most recent trend suggests a bearish bias. One trading opportunity on Macy's is a Bear Call Spread using a strike $52.50 short call and a strike $57.50 long call offers a potential 8.93% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock rose above the $57.50 long call strike price.

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

Macy’s Plans to Lay Off 2,500, Though Its Holiday Sales Were Up
Thu, 09 Jan 2014 00:50:39 GMT
New York Times – Online and same-store sales rose 3.6 percent in November and December, but the company said it would improve “efficiency.”

Is Silence J.C. Penney's Harbinger of Doom?
Wed, 08 Jan 2014 23:38:28 GMT
Motley Fool – A look at J.C. Penney after it released December sales results without the sales mixed in!

4:14 pm Macy's Holiday comps +3.6%; reaffirms FY14 EPS, guides FY14 sales above consensus (narrows FY14 comps); guides FY15 EPS above consensus including savings from cost reduction initiatives/restructuring; co will lay off 2500 employees
Wed, 08 Jan 2014 23:21:03 GMT
Briefing.com – 4:14 pm Macy's Holiday comps +3.6%; reaffirms FY14 EPS, guides FY14 sales above consensus (narrows FY14 comps); guides FY15 EPS above consensus including savings from cost reduction initiatives/restructuring; co will lay off 2500 employees and close 5 stores

Macy's posts strong holiday season sales, gives upbeat 2014 outlook
Wed, 08 Jan 2014 23:13:13 GMT

Macy's posts strong holiday season sales, gives upbeat 2014 outlook
Wed, 08 Jan 2014 23:10:56 GMT
Reuters – Department store operator Macy's Inc on Wednesday reported strong holiday season sales and gave a preliminary forecast for 2014 that suggests it would continue to outpace its rivals. The retailer also …

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