Family Dollar (FDO) Offering Possible 5.26% Return Over the Next 31 Calendar Days

Family Dollar's most recent trend suggests a bullish bias. One trading opportunity on Family Dollar is a Bull Put Spread using a strike $77.50 short put and a strike $72.50 long put offers a potential 5.26% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $77.50 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $72.50 long put strike price.

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

The RSI indicator is at 76.41 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Family Dollar

Dollar General questions motives of Family Dollar CEO
Thu, 21 Aug 2014 09:55:04 GMT

Dollar General questions motives of Family Dollar CEO
Thu, 21 Aug 2014 09:15:08 GMT
Reuters – Dollar General, which has made its own offer to buy Family Dollar, also alleged it had been led astray by Levine in talks on a potential buyout, notably during a meeting on June 19. “At no time during this meeting did Mr. Levine indicate that there was a process, that there was any urgency to act or that there were discussions with another potential buyer,” said Dollar General Chief Executive Rick Dreiling in a letter to Family Dollar's board on Wednesday. “Had we left the meeting with the belief that a sale of Family Dollar was imminent, we assure you that our course of action would have been different.” Bryn Winburn, a Family Dollar spokesman, did not immediately respond to an email seeking comment.

UPDATE 1-Dollar General questions motives of Family Dollar CEO
Thu, 21 Aug 2014 08:54:41 GMT
Reuters – Dollar General Corp questioned whether Family Dollar Stores Inc Chief Executive Howard Levine was being driven by self-interest in his support of a proposed takeover of his company by Dollar Tree Inc. Dollar General, which has made its own offer to buy Family Dollar, also alleged it had been led astray by Levine in talks on a potential buyout, notably during a meeting on June 19. “At no time during this meeting did Mr. Levine indicate that there was a process, that there was any urgency to act or that there were discussions with another potential buyer,” said Dollar General Chief Executive Rick Dreiling in a letter to Family Dollar's board on Wednesday. “Had we left the meeting with the belief that a sale of Family Dollar was imminent, we assure you that our course of action would have been different.”

[$$] Family Dollar CEO Said to Guard Job
Thu, 21 Aug 2014 06:16:05 GMT
The Wall Street Journal – The chief executive of Family Dollar Stores dismissed multiple requests from Dollar General to pursue a merger because he was worried about being forced to step down, Dollar General CEO Rick Dreiling said….

Dollar General Questions Motivation of Rival’s C.E.O.
Thu, 21 Aug 2014 02:23:17 GMT
New York Times – The retailer contends that Howard Levine of Family Dollar Stores ignored invitations to sell because he wanted to stay on as boss.

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