Covidien (COV) Offering Possible 12.36% Return Over the Next 11 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 12.36% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $85.00 long put strike price.

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

The RSI indicator is at 64.44 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 Covidien

Inversion crackdown all talk, no action?
Mon, 08 Sep 2014 21:50:00 GMT

The Zacks Analyst Blog Highlights: EGShares India Small Cap ETF, VanEck India Small Cap Index ETF, WisdomTree India Earnings Fund, Medtronic and Covidien
Mon, 08 Sep 2014 12:10:59 GMT

With Actively Managed Funds, Be Wary Of Expense Ratios
Thu, 04 Sep 2014 20:50:18 GMT

Paulson & Co. establishes a new position in Covidien in Q2 2014
Thu, 04 Sep 2014 13:00:20 GMT

The Zacks Analyst Blog Highlights: Medtronic, Covidien, Bacterin International Holdings, Inogen and Echo Therapeutics
Wed, 03 Sep 2014 11:48:11 GMT

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