Allergan (AGN) Offering Possible 10.5% Return Over the Next 39 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $170.00 short call and a strike $180.00 long call offers a potential 10.5% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $170.00 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $9.05 would be incurred if the stock rose above the $180.00 long call strike price.

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

The RSI indicator is at 39.62 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Allergan

Will the Valeant–Allergan Merger Flop?
Wed, 14 May 2014 12:17:37 GMT

Allergan has many other strategic options, says BMO Capital
Wed, 14 May 2014 11:58:14 GMT

Zacks Rank #1 Additions for Wednesday
Wed, 14 May 2014 11:19:50 GMT

[$$] Pershing Square Wants Allergan Holders to Push for Merger Talks
Wed, 14 May 2014 04:53:52 GMT
The Wall Street Journal – Pershing Square Capital Management LP is calling for a “referendum” of shareholders of botox-maker Allergan in an attempt to get the company to engage in negotiations with Valeant Pharmaceuticals….

[$$] Valeant to Improve Offer for Allergan
Wed, 14 May 2014 04:53:43 GMT
The Wall Street Journal – Valeant Pharmaceuticals said it plans to improve its offer for Allergan later this month to show its commitment to completing a takeover of the Botox maker.

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