American Electric (AEP) Offering Possible 12.36% Return Over the Next 27 Calendar Days

American Electric’s most recent trend suggests a bearish bias. One trading opportunity on American Electric is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 12.36% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $72.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $77.50 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for American Electric 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 American Electric is bullish.

The RSI indicator is at 55.38 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 American Electric

Is AEP Overvalued Compared to Its Peers?
Thu, 18 Oct 2018 13:40:02 +0000
American Electric Power Company’s (AEP) EV-to-EBITDA multiple is 11.1x. The company’s five-year average EV-to-EBITDA multiple is 9.6x. Currently, American Electric Power is trading at a premium of 15.6% to its historical average.

See what the IHS Markit Score report has to say about American Electric Power Company Inc.
Thu, 18 Oct 2018 12:07:39 +0000
American Electric Power Company Inc NYSE:AEP

Analyzing AEP’s Performance before Its Third-Quarter Earnings
Thu, 18 Oct 2018 12:05:09 +0000
As of October 17, American Electric Power Company (AEP) has fallen 2.5% YTD (year-to-date). However, the Utilities Select Sector SPDR ETF (XLU) has risen 1.8% YTD.

AEP Schedules Live Webcast Of Quarterly Earnings Call
Wed, 17 Oct 2018 14:51:00 +0000
COLUMBUS, Ohio , Oct. 17, 2018 /PRNewswire/ — American Electric Power (NYSE: AEP) has scheduled a quarterly earnings conference call with financial analysts at 9 a.m. EDT Thursday , Oct. 25. The call …

The Zacks Analyst Blog Highlights: Amazon, Broadcom, Lockheed Martin, Procter & Gamble and American Electric
Tue, 16 Oct 2018 12:11:12 +0000
The Zacks Analyst Blog Highlights: Amazon, Broadcom, Lockheed Martin, Procter & Gamble and American Electric

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