Red Hat (RHT) Offering Possible 10.5% Return Over the Next 23 Calendar Days

Red Hat's most recent trend suggests a bearish bias. One trading opportunity on Red Hat is a Bear Call Spread using a strike $175.00 short call and a strike $185.00 long call offers a potential 10.5% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $175.00 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $9.05 would be incurred if the stock rose above the $185.00 long call strike price.

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

IBM’s Debt and Deal Make the Stock a Big Loser Again
Mon, 24 Dec 2018 15:02:00 +0000
IBM stock underperformance has been driven by concerns about the outlook for a key software business, and skepticism about a debt-financed megadeal for software provider Red Hat.

Amid $34B IBM deal, Red Hat goes to court to squash infringement allegations
Fri, 21 Dec 2018 13:37:35 +0000
As it awaits a shareholder vote on its $34 billion buyout by IBM, Red Hat is accusing another company of casting “uncertainty” over the patent rights of its flagship product, Red Hat Enterprise Linux.

See what the IHS Markit Score report has to say about Red Hat Inc.
Thu, 20 Dec 2018 13:03:22 +0000
Red Hat Inc NYSE:RHT

Shareholder files suit over IBM-Red Hat deal
Tue, 18 Dec 2018 22:09:01 +0000
Nearly two months after IBM announced plans to buy Raleigh-based Red Hat, at least one shareholder complaint over the deal has been filed in federal court.

Red Hat's 3rd-Quarter Results: What You Need to Know
Tue, 18 Dec 2018 21:07:52 +0000
Red Hat Inc. (RHT) released its third-quarter financial results after the market closed on Dec. 17. Having witnessed robust subscription growth during the quarter as well as steady demand for its hybrid cloud technology solutions, the company registered strong earnings and revenue. Subscription revenue, which accounts for 87% of the company's total revenue, inched up 13% year over year to $741 million.

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