American Express (AXP) Offering Possible 44.23% Return Over the Next 27 Calendar Days

American Express's most recent trend suggests a bearish bias. One trading opportunity on American Express is a Bear Call Spread using a strike $149.00 short call and a strike $155.00 long call offers a potential 44.23% 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 $149.00 by expiration. The full premium credit of $1.84 would be kept by the premium seller. The risk of $4.16 would be incurred if the stock rose above the $155.00 long call strike price.

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

The RSI indicator is at 58.01 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 Express

American Express stock dips after revenue falls short of expectations
Fri, 23 Apr 2021 11:39:00 +0000
American Express Co. shares are falling in premarket trading Friday after the card company's first-quarter revenue came up short of expectations. The company posted first-quarter net income of $2.2 billion, or $2.74 a share, whereas it recorded net income of $367 million, or 41 cents a share, a year earlier. The net-income figure reflects the impact of $1.05 billion in credit-reserve releases as the economy and credit performance continue to improve. The FactSet consensus was for $1.61 in earnings per share. American Express's revenue, net of interest expense, came in at $9.06 billion, down from $10.31 billion a year prior. The declines reflected a drop in member spending and loan volumes, and a lower average discount rate versus the prior period. Analysts surveyed by FactSet were projecting $9.21 billion in revenue. Excluding the travel and entertainment categories, American Express saw card member spending that was 11% above what it was in the same period in 2019. In recent weeks, “all categories of travel and entertainment spending in the U.S.” have increased, Chief Executive Stephen Squeri said in a release. “We view 2021 as a transition year, where we are focused on making investments to rebuild growth momentum in our core business,” he continued. Shares are off 3.1% in premarket trading Friday. The stock has gained 16.7% over the past three months as the Dow Jones Industrial Average has risen 9.1%.

American Express Earnings Rebound, But Dow Jones Card Giant's Revenue Misses
Fri, 23 Apr 2021 11:23:42 +0000
American Express earnings unexpectedly rose, helped by a release of credit loss reserves, but the Dow Jones giant missed on revenue. AXP stock fell.

UPDATE 1-AmEx profit beats on over $1 bln reserve release boost
Fri, 23 Apr 2021 11:22:51 +0000
American Express Co exceeded quarterly profit estimates on Friday as it released more than $1 billion worth of funds it had set aside to cover potential coronavirus loan losses. Spending on goods and services on AmEx cards rose 6% from a year earlier on a forex adjusted basis.

AmEx profit beats on over $1 billion reserve release boost
Fri, 23 Apr 2021 11:19:17 +0000
The outlook for card companies is improving as government stimulus and vaccine rollouts fuel an economic recovery, helping the industry recover from a pandemic-driven slump in non-essential consumer spending last year. In the first quarter, American Express posted a benefit of $675 million from the release of $1.05 billion from its loan-loss reserves. Travel and entertainment-related spending on AmEx cards, adjusted for foreign exchange fluctuations, fell 50% as people continued to hunker down at home.

American Express Reports First-Quarter Revenue of $9.1 Billion and Earnings Per Share of $2.74
Fri, 23 Apr 2021 11:00:00 +0000
American Express Company (NYSE: AXP) today reported first-quarter net income of $2.2 billion, or $2.74 per share, compared with net income of $367 million, or $0.41 per share, a year ago. The results reflected the impact of $1.05 billion ($802 million after tax) in credit reserve releases2, primarily driven by continued improvements in the macroeconomic outlook and strong credit performance.

Related Posts


MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The educational training program and software services are provided to improve financial understanding.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.