Forest Labs Offering Possible 8.7% Return Over the Next 30 Calendar Days

Forest Labs's most recent trend suggests a bearish bias. One trading opportunity on Forest Labs is a Bear Call Spread using a strike $52.50 short call and a strike $57.50 long call offers a potential 8.7% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock rose above the $57.50 long call strike price.

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

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

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 Forest Labs

Forest Labs delay of Cariprazine to have minimal impact, says Cantor
Thu, 21 Nov 2013 16:51:18 GMT

FDA asks Forest for more info on antipsychotic
Thu, 21 Nov 2013 14:42:33 GMT

FDA asks Forest for more info on antipsychotic
Thu, 21 Nov 2013 14:42:33 GMT

Forest Laboratories and Gedeon Richter Receive Complete Response Letter for Cariprazine
Thu, 21 Nov 2013 11:24:59 GMT
noodls – NEW YORK & BUDAPEST, Hungary–(BUSINESS WIRE)–Forest Laboratories, Inc. (NYSE:FRX) and Gedeon Richter Plc. announced that the U.S. Food and Drug Administration (FDA) issued a complete response letter …

FDA declines to approve new Forest, Richter psychosis drug
Thu, 21 Nov 2013 10:49:50 GMT
Reuters – * Move set to delay launch of antipsychotic drug in U.S. BUDAPEST, Nov 21 (Reuters) – U.S. health regulators have declined to approve a new antipsychotic drug from Forest Laboratories and Richter, citing the need for more information, including likely additional clinical trial data. The Food and Drug Administration (FDA) delivered its verdict on cariprazine for schizophrenia and bipolar disorder in a so-called “complete response letter,” the type of letter issued by the agency to convey that it cannot approve a drug application in its current form. In its letter the FDA acknowledged that cariprazine demonstrated effectiveness but the two companies said on Thursday it appeared regulators wanted more tests on the optimal dose of the treatment to avoid potential side effects.

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