Procter & Gamble (PG) Offering Possible 16.14% Return Over the Next 24 Calendar Days

Procter & Gamble's most recent trend suggests a bearish bias. One trading opportunity on Procter & Gamble is a Bear Call Spread using a strike $120.00 short call and a strike $130.00 long call offers a potential 16.14% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $120.00 by expiration. The full premium credit of $1.39 would be kept by the premium seller. The risk of $8.61 would be incurred if the stock rose above the $130.00 long call strike price.

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

The RSI indicator is at 29.9 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 Procter & Gamble

Chipotle, Microsoft, Caterpillar, and Other Stocks for Investors to Watch This Week
Sun, 20 Oct 2019 19:00:00 +0000
Third-quarter earnings season is in full swing, with 122 S&P 500 components releasing results this week. The economic data highlight will be Thursday’s September durable goods orders, a decent proxy for business investment.

Earnings extravaganza — What to know in the week ahead
Sun, 20 Oct 2019 15:53:57 +0000
Earnings will be the focal point for investors this week, as about a quarter of the S&P 500 companies gear up to report results.

At the Highs, Walmart Stock Comes Down to Trust
Fri, 18 Oct 2019 16:34:27 +0000
The Walmart (NYSE:WMT) stock price has risen 28% so far in 2019, reaching a new all-time high. But the rally of Walmart stock doesn't yet seem justified by the performance of its business.Source: Ken Wolter / Indeed, Walmart's growth this fiscal year, even after it raised its guidance a few months ago, hardly looks impressive. The company expects its annual earnings per share, excluding certain items, to be little changed versus last year's EPS.Losses from India's Flipkart, in which Walmart acquired a majority stake last year, are hurting its bottom line. Excluding those losses, the company's post-Q2 outlook suggests "mid-to high single-digit percentage"growth of its EPS for the full year.InvestorPlace – Stock Market News, Stock Advice & Trading TipsStill, Walmart stock is trading at about 24 times that EPS guidance. That's the stock's highest earnings multiple in at least a decade. And it can be argued that 24 times earnings for 8% or so growth is too expensive. * 7 Reasons to Buy Canopy Growth Stock In fact, I've expressed some skepticism towards the current valuation of Walmart stock. And I still don't feel compelled to buy WMT stock. But the case for buying Walmart stock at $120 is stronger than its headline earnings multiples might suggest. Still, buying WMT stock at its current levels requires trust not only in the company, but in the American economy. WMT Has Become a Better CompanyThe bullish view of WMT stock is that Walmart simply is a much better company than it's been in years. Its grocery business has been re-energized, and clearly has taken market share from the likes of Kroger (NYSE:KR) and Albertsons. Kroger is guiding for same-sales growth excluding fuel this year of 2%-2.25%. Based on Walmart's outlook.its U.S. business should come in closer to 3% growth,Meanwhile, Walmart has moved heavily into e-commerce, both through acquisitions and by expanding its own online business. Walmart's Marketplace is becoming a serious rival to (NASDAQ:AMZN).And WMT seems to have finally cracked the code of the online grocery business, which had been a graveyard for capital going back to the failures of Webvan and Peapod in the beginning of the last decade.It's probably an exaggeration to call Walmart's efforts a turnaround. But it's easy to forget that Walmart's sales stagnated in the first half of this decade and so did the WMT stock price. The stock was dead money for about four years between 2013 and 2017. It's now risen 40% in the last two years, thanks to an accelerating top line and increasing confidence in its ability to grow its earnings going forward. The Story Sounds FamiliarWhat's interesting about Walmart stock at the moment is that its journey sounds similar to that of other U.S. large-cap consumer companies. McDonald's (NYSE:MCD) traded sideways from about 2012 through the end of 2015.Its future seemed at risk amidst the growth of "fast casual" competition and a focus on healthy eating. But CEO Steve Easterbrook, hired in early 2015, rolled out "all day breakfast", refranchised owned restaurants, and MCD stock doubled.Last year, Procter & Gamble (NYSE:PG) stock was unchanged versus early 2013. The external pressures on it seemed intense, as private-label products sold at the likes of Walmart and Kroger were hurting PG's results. Neither an aggressive cost-cutting plan nor a move to sell off smaller brands had worked. But P&G finally managed to accelerate its revenue growth to 5%, excluding acquisitions, in fiscal 2019. PG stock, too has soared. It gained a whopping 75% from its 2018 lows before its recent pullback.What we've seen is that if a U.S. large-cap company can convince the market that it is well-positioned, its stock is going to climb. And it's likely to move farther, and often faster, than fundamental analysis might suggest. The WMT Stock Price Is Partially Built on TrustIf that trend holds for Walmart stock, it can rise well above its current level. But that's a big "if" for two reasons.First, in terms of the other large-cap stocks, the obvious worry is that their valuations have gone too far. Like WMT stock, PG, for example, trades at 24 times its earnings, and it's modestly growing. The valuation of many "safe" stocks, including WMT stock, look potentially stretched.Second, Walmart's strategy has to pay off. The long-running worry about WMT stock has been that its e-commerce and omnichannel growth will be good for sales – but won't necessarily boost its profits.The ability of Target (NYSE:TGT) to deliver bottom-line growth after spending billions on its omnichannel business likely eases that fear. Still, an investor buying WMT stock at $120 has to believe that its e-commerce growth will add to its earnings and not just its top line. The Case for Walmart StockThat said, an investor reasonably could see both risks as overdone. As far as valuation goes, it's clear that long-term interest rate expectations have come down. If Walmart can grow its earnings even 6% per year, while the ten-year U.S. government bonds yield less than 2%, investors are going to pay for that growth. 24 times EPS for a company that's growing at 8% sounds high to those of us who have invested for decades. But it may no longer be high.As far as the concerns about its omnichannel business go, the rebuttal is simple: it's working. Walmart is a legitimate rival to Amazon. The latter company is valued at almost $900 billion, and perhaps close to $500 billion excluding its Amazon Web Services business. In that context, is the $337 billion market capitalization of Walmart stock too high? An investor could quite easily argue that it's too low.Still, an investor needs to have a lot of trust in WMT stock to buy its at its highs. She needs to trust the company's strategy and the market. If that trust is justified, there's a path for WMT to follow MCD, PG, and other stocks higher.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post At the Highs, Walmart Stock Comes Down to Trust appeared first on InvestorPlace.

5 Dow Stocks Poised to Beat on Earnings This Month
Fri, 18 Oct 2019 11:23:11 +0000
Despite severe market volatility, the Dow is still in positive territory with a gain of 15.9% year to date. This is an excellent performance after a disappointing 2018.

Microsoft, Facebook, and 9 More Stocks That Could Be a Surprise This Earnings Season
Thu, 17 Oct 2019 17:45:00 +0000
Analysts identified their 11 highest-conviction names going into this earnings season, with positive catalysts over the next two months that they predict will send shares higher.

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 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.