Allergan Offering Possible 11.94% Return Over the Next 18 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $97.50 short call and a strike $105.00 long call offers a potential 11.94% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $97.50 by expiration. The full premium credit of $0.80 would be kept by the premium seller. The risk of $6.70 would be incurred if the stock rose above the $105.00 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 below 20 which suggests that the stock is in oversold territory.

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LATEST NEWS for Allergan

Allergan Sells Off Obesity Business
Tue, 03 Dec 2013 20:30:02 GMT

Allergan, Inc. Completes Sale of Obesity Intervention Business
Mon, 02 Dec 2013 23:07:54 GMT
noodls – IRVINE, Calif.–(BUSINESS WIRE)– Allergan, Inc. (NYSE:AGN) today announced that it has completed the sale of its obesity intervention business to Apollo Endosurgery, Inc. Under the terms of the agreement, …

Allergan completes sale of obesity intervention business
Mon, 02 Dec 2013 22:03:03 GMT

InPlay: Allergan completes sale of its obesity intervention business; received cash payment of $75 mln and a $15 mln minority equity interest in Apollo Endosurgery
Mon, 02 Dec 2013 22:02:28 GMT

Allergan, Inc. Completes Sale of Obesity Intervention Business
Mon, 02 Dec 2013 22:00:00 GMT
Business Wire – Allergan, Inc. today announced that it has completed the sale of its obesity intervention business to Apollo Endosurgery, Inc. Under the terms of the agreement, which was first announced on October 29, 2013, Allergan received a cash payment of $75 million, subject to certain adjustments, and a $15 million minority equity interest in Apollo Endosurgery.

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