Gap Offering Possible 12.36% Return Over the Next 33 Calendar Days

Gap's most recent trend suggests a bullish bias. One trading opportunity on Gap is a Bull Put Spread using a strike $40.00 short put and a strike $35.00 long put offers a potential 12.36% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $40.00 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $35.00 long put strike price.

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

The RSI indicator is at 76.41 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 Gap

Blue Christmas for retail? Maybe not. Here's why
Mon, 18 Nov 2013 19:58:06 GMT
CNBC – Opinion is split, and many factors could affect whether shoppers open their wallets this holiday season. But one thing is clear: The pressure is on.

The Future of Men's Wearhouse
Mon, 18 Nov 2013 18:30:08 GMT
Motley Fool – With rival Jos. A. Bank offering to buy the company, Men's Wearhouse is considering all options. Here are some likely scenarios, including why Gap may even “like the way they look.”

Mind The Gap: Nearly Half Of Small Businesses Lack Benefits, One-Third Sharing Some Benefit Costs With Employees
Mon, 18 Nov 2013 17:41:40 GMT
noodls – The Hartford offers its customizable, voluntary group disability coverage DisabilityFLEX to companies with as few as 10 employees HARTFORD, Conn.–(BUSINESS WIRE)– Nearly half (42 percent) of small business …

Urban Outfitters: Another Miss on the Horizon?
Mon, 18 Nov 2013 15:02:27 GMT
Motley Fool – Urban Outfitters is set to report its third quarter. How will the company perform against peers, such as Gap and L Brands? Here's what to watch.

Week Ahead Market Report: November 18, 2013
Mon, 18 Nov 2013 14:54:00 GMT
Forbes – With little news out this morning, the US markets decided to follow the European and Asian markets higher today. In the opening minutes of trading, the Dow Jones Industrial Average hit a new all-time high, crossing above 16,000 for the first time. In overseas trading, Japan's Nikkei 225 Stock Average was […]

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