CarMax (KMX) Offering Possible 16.28% Return Over the Next 14 Calendar Days

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CarMax’s most recent trend suggests a bullish bias. One trading opportunity on CarMax is a Bull Put Spread using a strike $75.00 short put and a strike $70.00 long put offers a potential 16.28% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $75.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock dropped below the $70.00 long put strike price.

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

The RSI indicator is at 79.35 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for CarMax

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A Quarter of Vehicles Sold by CarMax Have Safety Defects
Sun, 01 Oct 2017 12:50:48 +0000
According to a recent survey by consumer watchdog groups, one in four vehicles at used car seller CarMax lots have at least one unrepaired safety defect for which a manufacturer’s recall has been issued….

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Fri, 29 Sep 2017 07:56:07 +0000
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Carmax Inc (KMX) President & CEO William D Nash Sold $7.4 million of Shares
Fri, 29 Sep 2017 00:15:04 +0000
President & CEO of Carmax Inc (NYSE:KMX) William D Nash sold 100,522 shares of KMX on 09/26/2017 at an average price of $73.85 a share.

Buying a Vehicle at CarMax? Watch for Recalled Takata Airbags
Thu, 28 Sep 2017 13:03:21 +0000
A review of eight CarMax Inc. locations by safety advocates found more than one-in-four vehicles reviewed had unrepaired safety recalls, including some with air bag inflators linked to deadly malfunctions….

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