Reynolds American (RAI) Offering Possible 6.38% Return Over the Next 24 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 $62.50 short call and a strike $67.50 long call offers a potential 6.38% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 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 $67.50 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 52.62 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

White House weakened draft of FDA's proposed tobacco regulations
Wed, 25 Jun 2014 02:08:50 GMT
Reuters – White House changes to proposed rules for tobacco products significantly weakened language detailing health risks from cigars and deleted restrictions that might have prevented online sales of e-cigarettes, published documents show. The White House's Office of Management and Budget, which analyzes the potential economic consequences of proposed regulations, deleted language in the U.S. Food and Drug Administration's recently proposed regulations describing how the rules would keep thousands of people from taking up cigar smoking and have enormous public health benefits. The OMB also weakened language detailing the FDA's concerns about the safety of e-cigarettes, according to documents published Tuesday in the Federal Register. An FDA spokeswoman, Jennifer Haliski, said the FDA does not comment on changes to a proposal during the review process but said the period for the public to comment on the proposal is still open until Aug. 8.

Lorillard, Reynolds Shares Cool Down Following Morgan Stanley Downgrade
Tue, 24 Jun 2014 18:25:01 GMT

Philip Morris, Other Cigarette Makers Face U.K. Ban
Tue, 24 Jun 2014 17:53:00 GMT

Is British American Tobacco the Real Beneficiary of a Reynolds American and Lorillard Merger?
Sat, 21 Jun 2014 19:06:21 GMT

Reynolds Hits 52-Week High on Vuse Nationwide Launch
Fri, 20 Jun 2014 12:50:05 GMT

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