Allergan (AGN) Offering Possible 9.89% Return Over the Next 37 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $220.00 short call and a strike $230.00 long call offers a potential 9.89% return on risk over the next 37 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $220.00 by expiration. The full premium credit of $0.90 would be kept by the premium seller. The risk of $9.10 would be incurred if the stock rose above the $230.00 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 60.94 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

AstraZeneca Announces Encouraging Data from Brilinta Study – Analyst Blog
Thu, 15 Jan 2015 15:30:03 GMT

Asanko Gold Mine Construction Update
Thu, 15 Jan 2015 12:01:35 GMT
noodls – January 15, 2015 Highlights: Phase 1 construction 24% complete and on schedule for first gold in Q1 2016. Project spend on budget with US$170 million of the US$295 million capital cost committed. Mining …

Roche to Acquire Up to 56% Interest in Foundation Medicine – Analyst Blog
Wed, 14 Jan 2015 23:20:11 GMT

Eli Lilly Inks Oncology Deals with Merck, Bristol-Myers – Analyst Blog
Wed, 14 Jan 2015 22:35:10 GMT

Farallon Capital raises stake in Allergan
Wed, 14 Jan 2015 17:00:04 GMT

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