Allergan (AGN) Offering Possible 47.06% Return Over the Next 24 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $165.00 short call and a strike $170.00 long call offers a potential 47.06% 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 $165.00 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $3.40 would be incurred if the stock rose above the $170.00 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 67.86 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

Legal Victory for Ackman and Valeant Pharma
Thu, 28 Aug 2014 10:53:14 GMT

Allergan Attempts to Elude Ackman Bid Fuel Bearish Bets
Thu, 28 Aug 2014 04:00:01 GMT

Valeant, Ackman get Oct. 6 trial over Allergan special meeting
Wed, 27 Aug 2014 18:52:53 GMT

Allergan sets date for special shareholder meeting
Wed, 27 Aug 2014 18:48:36 GMT

Allergan sets date for special shareholder meeting
Wed, 27 Aug 2014 18:48:36 GMT

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