Coach Offering Possible 8.7% Return Over the Next 32 Calendar Days

Coach's most recent trend suggests a bearish bias. One trading opportunity on Coach is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 8.7% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $62.50 long call strike price.

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

The RSI indicator is at 22.17 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


Here's What You Need To Know About Coach
Tue, 21 Jan 2014 23:36:26 GMT
Seeking Alpha – Coach Inc. ( COH ) is set to report earnings before the market opens on Wednesday, January 22. This holiday season we saw a larger than expected drop in brick and mortar retail sales and a surge in online …

Earnings Ahead: Coach, eBay & more
Tue, 21 Jan 2014 17:55:00 GMT
CNBC – Coach, eBay and Netflix are about to report earnings. FMHR trader Josh Brown does not see Coach as a buy right now, and Stephen Weiss says eBay is “slow growth.”

Coach Hopes to Turn Things Around in Its Second-Quarter Report
Tue, 21 Jan 2014 13:02:09 GMT
Motley Fool – Coach has not had the best run over the last 52 weeks, but it hopes to get back on track when it reports Q2 results.

Are High-Flying Retailers at the Same Risk as Best Buy?
Tue, 21 Jan 2014 12:50:26 GMT
24/7 Wall St. – The magnitude of the debacle at Best Buy during December was not something Wall Street expected. Most firms had fallen in love with the story, and Best Buy was seen as the proverbial Phoenix rising from …

Coach – Understanding Consumer Demographics Is Critical
Tue, 21 Jan 2014 11:57:01 GMT
Seeking Alpha – Last week I posted an article outlining the fundamentals for Coach Inc ( COH ) and used reverse discounted cash flow model to estimate how much growth market is currently pricing in its stock price. To …

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