NetApp (NTAP) Offering Possible 10.38% Return Over the Next 10 Calendar Days

NetApp's most recent trend suggests a bearish bias. One trading opportunity on NetApp is a Bear Call Spread using a strike $38.00 short call and a strike $43.00 long call offers a potential 10.38% 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 $38.00 by expiration. The full premium credit of $0.47 would be kept by the premium seller. The risk of $4.53 would be incurred if the stock rose above the $43.00 long call strike price.

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

The RSI indicator is at 27.81 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for NetApp

NetApp Slashing 600 Jobs, Taking Charges
Wed, 12 Mar 2014 21:59:00 GMT
Barrons.com – NetApp disclosed that it is slashing 600 jobs in light of constrained IT spending. NetApp (NTAP), which makes software and hardware products for data storage , said it would incur charges of approximately $35 to $45 million in the fourth quarter of fiscal 2014. NetApp's revenue fell below expectations in its latest quarter, and its outlook for the current quarter also was below expectations.

NetApp Plans to Cut 600 Jobs Amid Weak Government Demand
Wed, 12 Mar 2014 21:44:17 GMT
Bloomberg – NetApp Inc. (NTAP) plans to cut 600 jobs, or about 5 percent of its workforce, as the maker of data-storage equipment grapples with slowing sales growth caused in part by declining demand from U.S. federal agencies. The staff reduction will result in charges of $35 million to $45 million, mainly in the quarter that ends April 30, the Sunnyvale, California-based company said in a filing with the U.S. Securities and Exchange Commission today. NetApp’s revenue growth slowed to 1.6 percent in fiscal 2013, compared with an average 22 percent gain the previous three years, according to data compiled by Bloomberg. The job cuts will help NetApp focus on strategic initiatives and streamline “in light of the constrained IT spending environment,” the company said in the filing.

600 Firings at NetApp – More of the Death of Growth
Wed, 12 Mar 2014 21:10:32 GMT
24/7 Wall St. – NetApp, Inc. (NASDAQ: NTAP) is a former high-flyer in the broad storage sector, but this stock is just now confirming more of a story of the death of growth. This does not even sound company-specific if …

NetApp announces workforce reduction of approximately 600 employees
Wed, 12 Mar 2014 20:29:36 GMT
theflyonthewall.com – On March 12, NetApp committed to a business realignment plan designed to focus its resources on key strategic initiatives and streamline its business in light of the constrained IT spending environment. …

NETAPP, INC. Files SEC form 8-K, Costs Associated with Exit or Disposal Activities
Wed, 12 Mar 2014 20:21:22 GMT

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