Yum! Brands Offering Possible 14.42% Return Over the Next 32 Calendar Days

Yum! Brands's most recent trend suggests a bearish bias. One trading opportunity on Yum! Brands is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 14.42% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.63 would be kept by the premium seller. The risk of $4.37 would be incurred if the stock rose above the $80.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Yum! Brands 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 Yum! Brands 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 Yum! Brands

Which Pizza Restaurants Are Earning the Biggest Slice of the Global Pie?
Tue, 17 Dec 2013 23:54:22 GMT
Motley Fool – The pizza restaurant business model continues to be highly profitable while offering exciting growth potential for the most popular brands, both in the U.S. and internationally.

Business Highlights
Tue, 17 Dec 2013 22:13:40 GMT
AP – ___ AP survey: US income gap is holding back economy The growing gap between the richest Americans and everyone else isn't just bad for individuals. It's hurting the U.S. economy. So say most of the more …

How bearish trade is playing Yum
Tue, 17 Dec 2013 15:12:46 GMT
optionMONSTER – A huge trade is adjusting a downside position in Yum Brands. optionMONSTER's Depth Charge system show that a trader sold 39,550 December 70 puts for the bid price of $0.14 against previous open interest …

Chinese Fast Food Consumers Continue to Avoid KFC
Mon, 16 Dec 2013 18:42:00 GMT
Motley Fool – With sales continuing to struggle, Yum! Brands is considering a makeover for its 5,000 KFC restaurants in China to better compete with other fast-food giants.

Strategy To YieldBoost Yum! Brands To 4.5% Using Options
Mon, 16 Dec 2013 16:44:00 GMT
Forbes – Shareholders of Yum! Brands (NYSE: YUM) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the January 2016 covered call at the $90 strike and collect the premium based on the $3.80 bid, which annualizes to an additional 2.5% rate of return against the current […]

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