Microchip (MCHP) Offering Possible 11.11% Return Over the Next 36 Calendar Days

Microchip's most recent trend suggests a bearish bias. One trading opportunity on Microchip is a Bear Call Spread using a strike $40.00 short call and a strike $45.00 long call offers a potential 11.11% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $40.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $45.00 long call strike price.

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

Another Semiconductor Company Delivers Bad News About The Industry And Now Its Stock Is Tanking
Thu, 16 Oct 2014 20:58:00 GMT
Business Insider – Advanced Micro Devices just announced it will…

TSMC: Q3 Profit, Q4 Rev Guidance Beat; Disagree With Microchip
Thu, 16 Oct 2014 09:02:00 GMT

Stocks End Sharply Lower After Volatile Day
Wed, 15 Oct 2014 21:00:00 GMT

Qualcomm Makes a $2.5 Billion Bet on Bluetooth
Wed, 15 Oct 2014 18:33:21 GMT

U.S. chipmaker Qualcomm hopes for knock-out blow with $2.5 billion CSR bid
Wed, 15 Oct 2014 17:49:55 GMT
Reuters – Qualcomm Inc (QCOM.O) agreed to buy CSR Plc (CSR.L) for $2.5 billion, offering what it hopes is a knock-out blow to win the British Bluetooth specialist which is growing in areas like automotive and wearable devices. Qualcomm, the world's number one mobile chipmaker, has agreed to pay 900 pence a share in cash for CSR, a 56.5 percent premium on the share price before the start of the offer period in August, CSR said on Wednesday. There is a chance alternative bidders may emerge, Jeffries analyst Robert Lamb told investors in a research note, although he cautioned that the high multiple relative to recent chip mergers which Qualcomm is paying may prove difficult to trump. Qualcomm Chief Executive Steven M. Mollenkopf said the addition of CSR would allow it to diversify into the markets for short-range, wireless Bluetooth chips and audio processing used in portable audio, automotive controls and wearable devices.

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