American Express (AXP) Offering Possible 7.07% Return Over the Next 29 Calendar Days

American Express's most recent trend suggests a bullish bias. One trading opportunity on American Express is a Bull Put Spread using a strike $125.00 short put and a strike $115.00 long put offers a potential 7.07% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $125.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $9.34 would be incurred if the stock dropped below the $115.00 long put strike price.

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

The RSI indicator is at 72.01 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

Jack Ma’s Booming Loan Business Threatens Visa, AmEx in China
Tue, 21 Jan 2020 16:00:01 +0000
(Bloomberg) — As Visa Inc., Mastercard Inc. and American Express Co. prepare to enter China for the first time, one of their biggest competitive threats will come from a company that doesn’t issue credit cards.Jack Ma’s Ant Financial, already the biggest player in China’s $27 trillion payments market, is leveraging its ubiquitous Alipay mobile app to mount a rapid expansion into consumer lending.Instead of issuing cards, Ant allows customers to borrow with a few taps on their smartphones. The loans are wildly popular among China’s army of mobile-savvy shoppers, who often lack formal credit histories but generate enough financial data via Alipay for Ant to make informed decisions on whether they’ll default. The company’s outstanding consumer loans may swell to nearly 2 trillion yuan ($290 billion) by 2021, according to Goldman Sachs Group Inc. analysts, more than triple the level two years ago.“The consumer loans business has been growing at breakneck speed, but there are so many untapped users,” Huang Hao, president of Ant’s digital finance operations, said in a phone interview outlining the company’s strategy.Ant’s push into China’s 10 trillion yuan market for short-term consumer loans will make it an even more formidable challenger to U.S. card companies, which are counting on the world’s second-largest economy as a source of long-term growth.Many Chinese consumers and businesses are ditching credit cards as Ant and its main competitor Tencent Holdings Ltd. make app-based spending, borrowing and investing increasingly user-friendly. In a Nielsen survey of more than 3,000 Chinese people born after 1990, nearly 61% said they use online consumer credit while only 45.5% had a credit card.“For credit card companies coming to China, the biggest challenge is how to attract people,” said Zennon Kapron, managing director of Singapore-based consulting firm Kapronasia. “A lot of Chinese millennials are digital first, used to using Alipay as their first platform for payments, loans and wealth management.”The card giants appear to be moving forward with their China plans despite the headwinds. AmEx’s application to start a bank card clearing business has been accepted by the country’s central bank, while Mastercard has called China a “vital” market and Visa has said it’s working closely with regulators for a license.As part of its phase-one trade agreement with the U.S., China said it won’t take longer than 90 days to consider applications from providers of electronic-payments services. Regulators are opening the industry to foreign competition amid an unprecedented push to give international firms access to the country’s financial sector.Read more: Visa, Mastercard, AmEx Win Easier Access to China MarketIn response to questions from Bloomberg on the threat posed by Ant, Visa said it sees significant potential to support the growth and evolution of digital payments in China and is approaching the market with a long-term focus. Mastercard said it would continue to work with regulators to advance its application and is committed for the long haul. AmEx declined to comment.Ant, an affiliate of Alibaba Group Holding Ltd. that’s widely expected to pursue an initial public offering in coming years, started its consumer-credit business in 2015. Its loans tend to be small: half the users of Ant’s Huabei (translation: “just spend”) service borrow less than $290 and usually pay it back within months.The Hangzhou-based company, which declined to disclose the value of its outstanding loans, keeps delinquencies in check by tapping into a trove of data amassed by Alipay and Alibaba.Many customers have been using the payments and e-commerce platforms for years — handing over details from ID cards to addresses and spending habits. Once Ant extends a loan, it can track how the money is spent via Alipay. The result is a bad-debt ratio stands at about 1%, below the 1.24% national average for credit cards.Read more: China’s Gen Z, With Little Income, Gets Hooked on Easy CreditAnt keeps some of the loans on its own balance sheet, charging interest rates that range from about 5% to 18%, according to Huang. But most are passed on for a fee to banks and other financial institutions.“We’re set to continue to work with more banks and finance companies,” Huang said. “We are, at the end of the day, a platform.”The risk for Visa, Mastercard and AmEx is that a swathe of Chinese consumers and businesses will view credit cards as obsolete. About 60% of borrowers on Ant’s Huabei platform don’t have one, and many smaller merchants don’t accept cards because they find it’s cheaper and easier to use Alipay or Tencent’s WePay. The former, with more than 900 million users, is Alibaba’s preferred payments provider.“The competitive landscape is full of local players,” said Hang Qian, a partner at Oliver Wyman, a consultancy. “The key challenges are how to promote small merchants to accept credit cards and how to get e-wallet users to switch.”\–With assistance from Alfred Liu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net, Jodi SchneiderFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

American Express Plans Live Audio Webcast of Annual Investor Day
Tue, 21 Jan 2020 15:00:00 +0000
American Express Company (NYSE: AXP) plans to host its annual Investor Day on Tuesday, March 17, 2020 at 9 a.m. (ET). At the meeting, senior executives will discuss key business trends, initiatives and long-term strategies.

The Zacks Analyst Blog Highlights: Microsoft, American Express, Fidelity National Information Services, Goldman Sachs and Southern
Mon, 20 Jan 2020 15:06:03 +0000
The Zacks Analyst Blog Highlights: Microsoft, American Express, Fidelity National Information Services, Goldman Sachs and Southern

American Express (AXP) to Post Q4 Earnings: What's in Store?
Mon, 20 Jan 2020 15:01:03 +0000
American Express' (AXP) Q4 earnings are likely to have benefited from strong billings growth and accretive effect of share buyback partly offset by increase in card service costs.

Netflix, Comcast, Intel, and Other Stocks for Investors to Watch This Week
Sun, 19 Jan 2020 20:00:00 +0000
Fourth-quarter earnings season continues with earnings from Netflix, IBM, Intel, Comcast, and several airlines. Plus, central bank decisions and Davos.

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