Allergan (AGN) Offering Possible 25% Return Over the Next 8 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $272.50 short call and a strike $277.50 long call offers a potential 25% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $272.50 by expiration. The full premium credit of $1.00 would be kept by the premium seller. The risk of $4.00 would be incurred if the stock rose above the $277.50 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 36.19 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 Allergan

Allergan Anti-Infective Portfolio Highlighted in 13 Abstracts at IDWeek 2015
Thu, 08 Oct 2015 11:01:00 GMT
PR Newswire – DUBLIN, Oct. 8, 2015 /PRNewswire/ — Allergan plc (NYSE: ACT) today announced that its infectious disease portfolio will be featured in 13 abstracts highlighting data at IDWeek 2015, which takes place …

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