Reynolds American Offering Possible 6.38% Return Over the Next 31 Calendar Days

Reynolds American's most recent trend suggests a bearish bias. One trading opportunity on Reynolds American is a Bear Call Spread using a strike $50.00 short call and a strike $55.00 long call offers a potential 6.38% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $50.00 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $55.00 long call strike price.

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

The RSI indicator is at 32.26 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 Reynolds American

Vaporizing the competition
Wed, 18 Dec 2013 22:40:00 GMT
CNBC – Stephanie Cordisco, president of RJ Reynolds Vapor, expects to see some level of cannibalization with regular cigarettes. E-cigs provide higher profitability than regular cigarettes, Cordisco adds.

RAI Makes Notable Cross Below Critical Moving Average
Tue, 17 Dec 2013 16:29:00 GMT

Tougher Smoking-Law Agreement Struck by EU Negotiators
Tue, 17 Dec 2013 15:03:15 GMT
Bloomberg – European Union negotiators reached a tentative agreement on tougher smoking rules after compromising over how to regulate the growing market for electronic cigarettes.

Why Are Investors Undervaluing Altria?
Mon, 16 Dec 2013 19:52:27 GMT
Motley Fool – Altria is the cheapest domestic tobacco company with the largest dividend yield, but the company deserves to trade at a premium to its peers for a number of reasons.

GrowLife Wants to Be Legal Weed's Financier
Mon, 16 Dec 2013 16:20:50 GMT

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