Whole Foods (WFM) Offering Possible 7.76% Return Over the Next 12 Calendar Days

Whole Foods's most recent trend suggests a bearish bias. One trading opportunity on Whole Foods is a Bear Call Spread using a strike $39.00 short call and a strike $44.00 long call offers a potential 7.76% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $39.00 by expiration. The full premium credit of $0.36 would be kept by the premium seller. The risk of $4.64 would be incurred if the stock rose above the $44.00 long call strike price.

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

The RSI indicator is at 50.63 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 Whole Foods

IBD Industry Themes: Whole Foods Gets In Delivery Game
Mon, 08 Sep 2014 23:02:00 GMT

Final Glance: Supermarkets companies
Mon, 08 Sep 2014 22:38:54 GMT

Final Glance: Supermarkets companies
Mon, 08 Sep 2014 22:38:54 GMT

Grocery-Delivery Startup Instacart Partners with Whole Foods
Mon, 08 Sep 2014 20:44:32 GMT

Midday Glance: Supermarkets companies
Mon, 08 Sep 2014 17:36:22 GMT

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