Union Pacific (UNP) Offering Possible 42.86% Return Over the Next 20 Calendar Days

Union Pacific's most recent trend suggests a bearish bias. One trading opportunity on Union Pacific is a Bear Call Spread using a strike $142.00 short call and a strike $147.00 long call offers a potential 42.86% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $142.00 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $3.50 would be incurred if the stock rose above the $147.00 long call strike price.

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

The RSI indicator is at 38.88 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 Union Pacific

Which Railroad Topped First-Quarter Operating Margin Growth?
Thu, 28 Jun 2018 14:31:58 +0000
Earlier in this series, we looked at first-quarter freight volume growth for the major US railroads (XLI). In this part, we’ll review their operating margin changes for the same quarter. Railroads report operating ratios, which is an important metric for evaluating railroad performance. Operating ratio is the ratio of total operating expenses to revenue. An operating margin is the flip side of an operating ratio. The higher the operating margin, the better the operating efficiency and, in turn, the net margin.

This Railroad Led in First-Quarter Intermodal Revenue Growth
Thu, 28 Jun 2018 11:33:20 +0000
Intermodal is the second-largest revenue source for US railroads (FXR). Intermodal freight haulage involves cargo transportation in an intermodal container using various modes of transportation without handling the cargo itself while switching over modes. Railroads face tough competition from trucking companies in their intermodal operations.

What Coal Did to Major US Railroads’ Revenues in Q1 2018
Wed, 27 Jun 2018 21:00:02 +0000
According to the AAR (Association of American Railroads), coal accounted for 32.2% of originated tonnage for Class I railroads (XTN) in the United States. In the previous year, the share was 31.6%, indicating that coal remains a dominant force among all the commodities hauled by these railroads. The association further revealed that coal’s share of their total operating revenues rose from 13.9% in 2016 to 14.8% in 2017, behind only intermodal revenues. Nearly 70% of the coal consumed by US coal-fired power plants is carried by railroads.

Which Major US Railroad Had the Highest Revenue Growth in Q1?
Wed, 27 Jun 2018 19:30:02 +0000
Let’s start this comparative series by looking at the first-quarter revenue changes for the major railroads (IYJ). Revenue growth mainly depends on volumes, volume mix, and pricing. In 2018, freight demand has been somewhat better compared to 2017. That has driven the top lines for US railroads higher in the first quarter.

How Railroad Stocks Fared in Yesterday’s Massive Sell-Off
Tue, 26 Jun 2018 19:17:52 +0000
In this integrated world, the US–China trade dynamic is sure to affect supply chains, including the US transportation and logistics sector. US Treasury Secretary Steven Mnuchin believes steep tariffs on Chinese merchandise would hurt global supply chains. Yesterday, the Dow Jones Transportation Average (DJT) opened at 10,748.97 and went up to 10,750.88. From that point, it declined to close at 10,448.29, down 0.7% or 73.73 points.

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