Amazon Offering Possible 19.76% Return Over the Next 11 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $380.00 short put and a strike $370.00 long put offers a potential 19.76% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $380.00 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $8.35 would be incurred if the stock dropped below the $370.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Amazon is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Amazon is bullish.

The RSI indicator is at 71.73 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 Amazon

The Motley Fool's Best CEO of the Year Is…
Wed, 11 Dec 2013 00:05:15 GMT
Motley Fool – This top CEO has overseen a doubling in his company's international business over the past year, all while his stocks' share price gained 284% to lead all S&P 500 companies to the upside.

This is Nokia's Android phone
Tue, 10 Dec 2013 23:22:35 GMT
The Verge – Nokia has been building its own Android phone according to multiple sources familiar with the company’s plans. Codenamed Normandy, and known internally at Nokia under a number of other names, the handset is designed as the next step in low-end phones from the Finnish smartphone maker. We understand that Nokia has been testing “Normandy” with a special “forked” variant of Android that’s not aligned with Google’s own version, akin to what Amazon does with its Kindle Fire line. We’re told that Normandy supports Android applications like Skype, and other popular top apps. Nokia has been developing the Android-powered phone despite Microsoft’s plans to acquire the company’s handset business.

Amazon Aims for the Skies
Tue, 10 Dec 2013 22:32:06 GMT
Motley Fool – Amazon continues to innovate, shocking and impressing consumers on a consistent basis, but its latest innovation will be difficult to pull off.

AMZN to Expand Grocery Delivery Biz
Tue, 10 Dec 2013 22:11:22 GMT
Zacks – As per AllThingsD, Amazon.com (AMZN) is about to launch its online grocery delivery service, AmazonFresh in San Francisco.

EBay shoppers seem to love their gadgets
Tue, 10 Dec 2013 19:57:21 GMT
Big Data Download – http://d.yimg.com/hd/cnbc2/lotus/1386703725668_568_21yYpmplUTbf1_1_0.jpg?s=25b64b3cac653ccc8e3f568e9fb0c400&c=93a6cdfa584b2ad1cc19bd7b9b049cbf&a=cnbc2&mr=0

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