Allergan Offering Possible 5.26% Return Over the Next 12 Calendar Days

Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $92.50 short call and a strike $97.50 long call offers a potential 5.26% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $92.50 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock rose above the $97.50 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 below 20 which suggests that the stock is in oversold territory.

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

Does the Maker of Botox Need to Tighten Up Its Outlook?
Thu, 31 Oct 2013 16:38:31 GMT

Allergan weakness creates buying opportunity, says Argus
Thu, 31 Oct 2013 13:34:56 GMT

Top Health Care Software Stocks: An Exclusive Interview with David H. Windley, Managing Director in the Equity Research Group of Jefferies & Company, Inc.
Wed, 30 Oct 2013 17:40:00 GMT

[$$] Allergan Agrees to Sell Lap-Band Business
Wed, 30 Oct 2013 04:04:08 GMT
The Wall Street Journal – Allergan reached a deal to sell its lap-band obesity-intervention business to Apollo Endosurgery for as much as $110 million.

U.S./Canada daily earnings hits & misses Oct 29 – 1800 ET
Tue, 29 Oct 2013 22:00:28 GMT
Reuters – The following U.S.- and Canada-listed companies reported earnings on Tuesday. This list shows whether they beat, met or missed Wall Street analysts' forecasts. It also shows the difference between analysts' …

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