American Express (AXP) Offering Possible 9.53% 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 $115.00 short put and a strike $105.00 long put offers a potential 9.53% 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 $115.00 by expiration. The full premium credit of $0.87 would be kept by the premium seller. The risk of $9.13 would be incurred if the stock dropped below the $105.00 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 71.31 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

The Gabelli Asset Fund 1st Quarter Shareholder Commentary
Tue, 18 Jun 2019 20:31:54 +0000
Discussion of markets and holdings

Mario Gabelli Comments on American Express
Mon, 17 Jun 2019 20:52:36 +0000
Guru stock highlight

The Berkshire Hathaway Portfolio: All 48 Buffett Stocks
Mon, 17 Jun 2019 20:02:56 +0000
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.Berkshire Hathaway held positions in 48 separate stocks as of March 31, according to regulatory filings with the Securities and Exchange Commission. But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Some holdings are so small as to be immaterial leftovers from earlier bets the Oracle of Omaha has yet to completely exit.And perhaps most importantly, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise nearly 80%. Banks and airlines, to cite a couple of sectors, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks actually were picked by portfolio managers Todd Combs and Ted Weschler.Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio. SEE ALSO: The 19 Best Stocks to Buy for the Rest of 2019

American Express Teams Up With Andy Murray To Back Tennis Fans At Wimbledon
Mon, 17 Jun 2019 17:19:00 +0000
American Express (AXP) today announced its partnership with two-time Wimbledon champion Sir Andy Murray OBE, to kick off a multi-year partnership with The All England Lawn Tennis Club, as the Official Payment Partner of The Championships.

Visa Stock Remains a Buy, But Expectations Need to Be Lowered
Mon, 17 Jun 2019 12:14:39 +0000
What does an investor do with an opportunity like Visa (NYSE:V)? The Visa stock price continues to stay elevated, at over 27-times forward earnings. Of the 40 largest U.S.-listed stocks by market capitalization, only Amazon (NASDAQ:AMZN) and rival Mastercard (NYSE:MA) sport higher valuations.Source: Shutterstock And yet V stock certainly seems to merit a premium valuation. Few large-capitalization stocks can match its near-term growth prospects. Long-term opportunities come in several forms: lower use of cash worldwide, international expansion, and a move into business-to-business (B2B) offerings.Does an investor follow the Warren Buffett maxim that it's "far better to own a wonderful company at a fair price than a fair company at a wonderful price," as I argued back in 2017? Or does valuation matter, particularly in a bull market seemingly running on fumes?InvestorPlace – Stock Market News, Stock Advice & Trading TipsFor now, Visa stock seems a worthwhile bet. But investors probably have to temper their expectations. The next decade is not going to look like the last one. The Incredible Rise in the Visa Stock PriceLooking backwards, investors certainly missed a huge opportunity in Visa stock. Over the past ten years, shares have returned 953%, not including an admittedly modest dividend. Those gains haven't come just because of the bull market either. In 2009, the company earned 81 cents per share (adjusting for the company's 2015 stock split). A decade ago, the stock (again, on a split-adjusted basis) traded for $16-plus, implying a P/E multiple right at 20x. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Relative to 2019 expectations, the multiple now sits at 31x. And there are two ways to look at that expansion. The first is that the incredible gains in the Visa stock price are coming mostly from higher earnings. Based on the Street's expectations for 2019, V should climb nearly 500% from 2009 levels.The second, however, is a more difficult question: can the multiples assigned V stock really go much higher? This is a much larger company, which makes percentage growth more difficult to achieve. Yet investors now are paying 50%-plus more for the same dollar of earnings. As impressive as Visa's opportunities are, it's tough to argue that its growth potential is better now than it was a decade ago.Obviously, the market today is in much better shape than in June 2009, when it was just three months removed from financial crisis lows. But that's kind of the point: Visa's earnings multiples can't expand much more without the broad market moving higher.In that scenario, earnings growth still can drive returns — again, profits are expected to rise 15%-plus in 2020. But roughly 16% annual returns (including the dividend) might seem disappointing in the context of the recent performance. Is V Stock the Best Play?As incredible as the performance of Visa stock seems, there's something more incredible: Mastercard. Visa has returned nearly 1,000% in a decade, yet V shares have underperformed their rival over that span. In fact, MA has been the better pick over one, three, and five-year periods as well. Its 10-year return is a staggering 1,460%.At the moment, MA actually is slightly more expensive on an earnings basis than V stock. Mastercard has greater exposure to non-U.S. payments, and thus, at least in theory, more room for growth. And while past performance doesn't guarantee future performance, the better returns from Mastercard shares are at least worth considering.Of course, Visa and Mastercard aren't the only two stocks in the space, either. Will Healy this month highlighted a potential opportunity in Discover Financial Services (NYSE:DFS), which trades at a substantial discount to both V and MA despite significant potential risk in China. American Express (NYSE:AXP) has been an inconsistent performer, but offers value as well.The stories of the four stocks aren't the same; at the moment, it's foolish to argue that DFS or AXP should be treated like their rivals. But when considering V stock at these multiples, investors should at least keep an open mind toward other stocks in the space. Visa Looks Good, but Not GreatAt the least, the next decade for the Visa stock price is not going to look like the last decade. That's probably not surprising: a repeat of the 950%-plus gains would give Visa a market cap of some $4 trillion.But performance could be good — and still far short of the standard Visa has set. Bear in mind that if V stock appreciated at 10.5% a year for the next decade, it would reach a $1 trillion market cap ten years from now. Maybe that's not unrealistic in a world where credit-card usage continues to rise. Plus, Visa's efforts in cross-border payments and B2B could bear fruit.Still, $1 trillion does seem like a big ask for returns that almost seem middling given the torrid performance of payment companies of late. And it shows the difficulty in Visa stock here. There's a path to a $1 trillion valuation, which is the good news. But whether 10%-plus a year is good enough for investors depends on their view of the markets and the competition.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Visa Stock Remains a Buy, But Expectations Need to Be Lowered appeared first on InvestorPlace.

Be Sociable, Share!

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 www.MarketTamer.com 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.