Covidien (COV) Offering Possible 14.94% Return Over the Next 22 Calendar Days

Covidien's most recent trend suggests a bearish bias. One trading opportunity on Covidien is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 14.94% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock rose above the $75.00 long call strike price.

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

The RSI indicator is at 36.24 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

6:15 am Covidien beats by $0.01, reports revs in-line; reaffirms FY14 revs guidance
Sun, 27 Apr 2014 10:15:00 GMT

Financial Engineering Helps Covidien's Earnings
Sat, 26 Apr 2014 07:24:02 GMT

Covidien (COV) Beats EPS Estimates by a Penny
Fri, 25 Apr 2014 19:31:00 GMT

Covidien's CEO Discusses F2Q 2014 Results – Earnings Call Transcript
Fri, 25 Apr 2014 17:17:06 GMT
Seeking Alpha – Joe Almeida Thanks Cole. Let me begin by saying that overall, we were pleased with our results this quarter. Sales were on plan up 4% operationally and up 3% as reported. Our results are in line with our …

3 Stocks Pushing The Health Services Industry Lower
Fri, 25 Apr 2014 17:07:00 GMT

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