CarMax (KMX) Offering Possible 23.46% Return Over the Next 6 Calendar Days

CarMax’s most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 23.46% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $87.50 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $4.05 would be incurred if the stock dropped below the $82.50 long put strike price.

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

The RSI indicator is at 69.48 level which suggests that the stock is neither overbought nor oversold at this time.

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