Allergan (AGN) Offering Possible 6.38% Return Over the Next 36 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $185.00 short call and a strike $195.00 long call offers a potential 6.38% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $185.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $9.40 would be incurred if the stock rose above the $195.00 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 47.32 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

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Fri, 17 Oct 2014 19:29:21 GMT

Faber Report: Allergan takeover battle
Fri, 17 Oct 2014 13:42:00 GMT

Ackman: Allergan tried to manipulate Valeant stock
Thu, 16 Oct 2014 16:37:00 GMT

Ackman: Allergan tried to manipulate Valeant stock
Thu, 16 Oct 2014 16:37:00 GMT

Ackman: Lawyers have documents purported to show Allergan misled on Valeant
Thu, 16 Oct 2014 16:08:37 GMT
Reuters – Hedge fund manager Bill Ackman said on Thursday his lawyers have seen documents that he said show Allergan's board knowingly misled investors as part of a defensive strategy to stave off prospective buyer Valeant Pharmaceuticals International Inc. Ackman said he had not yet reviewed the documents himself, and did not give any copies of them to reporters, whom he was speaking to on the sidelines of a conference. Allergan representatives were not immediately available for comment. In September, Valeant Chief Executive Officer Michael Pearson wrote to Allergan alleging that it was making “baseless attacks” about his company.

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