Microchip (MCHP) Offering Possible 7.53% Return Over the Next 17 Calendar Days

Microchip's most recent trend suggests a bullish bias. One trading opportunity on Microchip is a Bull Put Spread using a strike $42.00 short put and a strike $37.00 long put offers a potential 7.53% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $42.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock dropped below the $37.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Microchip is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Microchip is bullish.

The RSI indicator is at 71.63 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 Microchip

Energy-Measurement Analog Front Ends Offer High Accuracy and Integration for Single-Phase Smart Meters and Power Monitoring
Tue, 04 Nov 2014 13:00:00 GMT
Business Wire – Microchip Technology Inc. , a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, today announced the completion of its high-accuracy, 1-8 channel, single and poly-phase MCP391X energy-measurement Analog Front End family.

Chips: SIA Sounds the All-Clear; Nomura Still Sees Trouble; Microchip Pressured to Change Tune?
Tue, 04 Nov 2014 04:12:00 GMT
Barrons.com – The big worry over semiconductor market trends that began three and a half weeks ago today met with a semi-official reassurance, in the form of the Q3 quarterly chip report from the industry's trade group, the Semiconductor Industry Association, which showed an 8% year-over-year increase, to $87 billion, which the association characterized as “strong.” You'll recall that on October 10th, Microchip Technology (MCHP) warned that its September-quarter results were going to be below expectations, and said it believed a broad correction in the semiconductor market was underway. Then last Friday, after a forecast from Microchip for this quarter that wasn't as bad as feared, analysts rushed to say that there really doesn't seem to be much of a correction, after all. Today’s report from SIA pours more cold water on fears of a correction. SIA CEO Brian Toohey said that the sales, a new quarterly record, saw growth across most regions of the world: Through the third quarter of 2014, global semiconductor sales remain strong and well ahead of last year’s pace.

HearNotes Wireless Earbuds Promise Premium Sound Without The Cables
Mon, 03 Nov 2014 14:16:00 GMT

Microchip Technology (MCHP): Moving Average Crossover Alert
Mon, 03 Nov 2014 13:50:57 GMT
Zacks – Microchip Technology (MCHP): Moving Average Crossover Alert

Microchip: Oh, Well, Never Mind; Street Declares Giant Correction Turns out To be Very Little
Sat, 01 Nov 2014 04:20:00 GMT
Barrons.com – Shares of Microchip Technology (MCHP) are up $2.91, or 7.1%, at $44, in early trading, after the company yesterday afternoon reported fiscal Q2 revenue in line with consensus and profit a penny below, and forecast revenue below consensus. You’ll recall Microchip three weeks ago warned that its quarterly results would miss expectations, and presented itself as the canary in the coal mine, suggesting the entire chip sector was in trouble. Analysts today rushed to point out that yesterday’s forecast from Microchip is actually not that bad, and perhaps Microchip was no canary after all, and chips are fine. Microchip’s reported revenue came in at $546 million, consistent with its revenue warning three weeks ago.

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