Yahoo (YHOO) Offering Possible 16.28% Return Over the Next 16 Calendar Days

Yahoo's most recent trend suggests a bearish bias. One trading opportunity on Yahoo is a Bear Call Spread using a strike $51.00 short call and a strike $56.00 long call offers a potential 16.28% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $51.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock rose above the $56.00 long call strike price.

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

The RSI indicator is at 49.47 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 Yahoo

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Thu, 04 Dec 2014 23:00:00 GMT

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Thu, 04 Dec 2014 19:37:38 GMT
The Wall Street Journal – Yahoo Chief Executive Marissa Mayer has made mobile advertising the centerpiece of her turnaround efforts. Next year, Ms. Mayer is poised for some mobile ad bragging rights. Yahoo is set to pass Twitter …

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