BREAKING: These S&P 500 Stocks Dive On Fed Shutdown DealInvestors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience.Shares of premium athletic apparel company Lululemon (LULU) have taken a beating lately, as the stock has lost 55% of its value year-to-date. The company faces margin pressures from tariffs and supply-chain shifts, while consumer demand weakens as shoppers turn to lower-priced alternatives.With shares ...

Core Viewpoint - Amazon (AMZN) stock has shown signs of distribution and has broken through key support levels, indicating potential struggles to regain upward momentum [1] Summary by Sections Stock Performance - Amazon's stock has been declining since early September, with a decreasing relative strength line [1] - The stock is currently facing resistance at the $240 level, with a bear call spread strategy being considered to capitalize on this trend [1][2] Options Strategy - A bear call spread can be executed with a Nov. 21 expiry using the 240-245 strike prices, which can be sold for approximately $1.25 [2] - The maximum gain from this strategy is $125, while the maximum loss is $375, representing a potential return of 33.3% if the stock closes below $240 by Nov. 17 [3] Risk Management - The bear call spread is a risk-defined strategy, allowing traders to know their worst-case scenario in advance [4] - A stop loss can be set if Amazon trades above $230 or if the spread value increases from $1.25 to $2.50 [4] Company Ratings - Investor's Business Daily rates Amazon with a Composite Rating of 84 out of 99, an Earnings Per Share Rating of 74, and a Relative Strength Rating of 49, ranking 14th in its group [5] - Amazon is expected to report earnings in late October, introducing earnings risk for the options strategy if held until expiration [5]

Core Insights - Netflix stock has shown declining relative strength since late June, breaking below key moving averages [1][6] - A bear call spread strategy is proposed, betting that Netflix will struggle to exceed a price of 1,260 by mid-October [1][3] - The bear call spread involves selling a call at the 1,260 strike and buying a call at the 1,265 strike, with a potential return of 40.8% [3][4] Financial Metrics - The bear call spread can be sold for approximately $1.45 per share, yielding a maximum gain of $145 for a 100-share contract [3][4] - The maximum loss for this strategy would be $355 if Netflix closes above 1,265 on the expiration date [4][5] - Netflix's current stock price is 1,208, indicating that it could rise by 4% and still allow the trade to achieve maximum profit [4] Market Position - Investor's Business Daily rates Netflix with a Composite Rating of 92, an Earnings Per Share Rating of 97, and a Relative Strength Rating of 82, ranking it first in the Leisure-Movies & Related group [6] - Despite strong fundamental ratings, recent technical breakdowns suggest potential near-term weakness for Netflix [6][7] - Analysts express concerns over Netflix's valuation, slowing subscriber growth, and rising content costs amid intense competition in the streaming market [7]

Core Insights - The article discusses the bear call spread strategy, which involves selling one call option and buying another to limit risk while profiting from a bearish outlook on a stock [1][2]. Group 1: Bear Call Spread Mechanics - A bear call spread is a vertical spread where two options with the same expiry month are traded, generating a credit for the trader [1]. - The sold call option is closer to the stock price than the bought call, and the strategy performs best when the stock declines [2]. - This strategy can also yield profits if the stock remains flat or rises slightly, and it is suitable for retirement accounts due to its defined risk [2]. Group 2: FedEx (FDX) Specifics - FedEx (FDX) has a high implied volatility percentile of 90% ahead of its earnings announcement on September 18th, making it a candidate for a bear call spread [3]. - The proposed bear call spread for FDX involves selling the $250-strike call and buying the $260-strike call, with a potential credit of $1.85, leading to a maximum risk of $815 and a profit potential of 22.70% [4][5]. - The breakeven price for this trade is $251.85, which is 9.71% above the current stock price [4]. Group 3: Alternative Bear Call Spread - An alternative bear call spread involves selling the $230-strike call and buying the $250-strike call, with a potential credit of $7.20, resulting in a maximum risk of $1,280 and a profit potential of 56.25% [8]. - This alternative strategy has a higher loss probability of 40.4% compared to the previous spread [8]. Group 4: Technical Opinion - The Barchart Technical Opinion rating for FDX is a 32% Sell, indicating a weak short-term outlook for maintaining the current direction [7].