Morgan Stanley Offering Possible 6.61% Return Over the Next 18 Calendar Days

Morgan Stanley's most recent trend suggests a bearish bias. One trading opportunity on Morgan Stanley is a Bear Call Spread using a strike $30.00 short call and a strike $35.00 long call offers a potential 6.61% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $30.00 by expiration. The full premium credit of $0.31 would be kept by the premium seller. The risk of $4.69 would be incurred if the stock rose above the $35.00 long call strike price.

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

[$$] Morgan Stanley To Pay $1.25 Billion in Mortgage-Backed Case
Wed, 05 Feb 2014 04:15:04 GMT
The Wall Street Journal – Morgan Stanley said it agreed to pay $1.25 billion to settle a Federal Housing Finance Agency lawsuit stemming from mortgage-backed securities.

Morgan Stanley to pay $1.25 billion to resolve mortgage lawsuit
Wed, 05 Feb 2014 02:29:41 GMT

JPMorgan Joins Morgan Stanley in Settling U.S. Mortgage Cases
Wed, 05 Feb 2014 01:52:53 GMT
Bloomberg – Morgan Stanley (MS) and JPMorgan Chase & Co. (JPM) agreed to pay $1.86 billion to end U.S. claims of misconduct in their handling of mortgages and related securities that left taxpayers shouldering losses after the financial crisis. Morgan Stanley said it reached a $1.25 billion deal to end Federal Housing Finance Agency accusations the bank sold faulty mortgage bonds to Fannie Mae (FNMA) and Freddie Mac (FMCC) before losses at the firms pushed them into government conservatorship. JPMorgan will pay $614 million for submitting ineligible loans for Federal Housing Administration and Veterans Affairs insurance.

Morgan Stanley restates earnings on $1.3bn loan settlement
Wed, 05 Feb 2014 00:40:16 GMT
Financial Times – Morgan Stanley has been forced to restate its fourth-quarter earnings after agreeing a $1.3bn settlement with a US regulator over $11bn in mortgage-backed securities it sold to Fannie Mae and Freddie Mac. …

4:33 pm Morgan Stanley resolves MBS litigation with GSEs for $1.25 bln
Wed, 05 Feb 2014 00:13:59 GMT
Briefing.com – 4:33 pm Morgan Stanley resolves MBS litigation with GSEs for $1.25 bln

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