Allergan Offering Possible 6.95% 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 $120.00 short call and a strike $130.00 long call offers a potential 6.95% 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 $120.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $9.35 would be incurred if the stock rose above the $130.00 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 49.13 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

CHMP Negative on Novartis' RLX030
Mon, 27 Jan 2014 15:50:04 GMT
Zacks – Novartis suffered a setback when the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a negative opinion on pipeline candidate RLX030 (serelaxin).

Commit To Purchase Allergan At $97.50, Earn 5.2% Annualized Using Options
Fri, 24 Jan 2014 16:27:00 GMT

Allergan Slips on Restasis Challenge
Thu, 23 Jan 2014 17:50:04 GMT

Actavis Comments on Notification to Allergan, Inc. of Submission of Application for Restasis®
Wed, 22 Jan 2014 18:17:28 GMT
noodls – DUBLIN, Jan. 22, 2014 /PRNewswire/ — Actavis plc (NYSE: ACT) today confirmed that its subsidiary, Watson Laboratories, Inc., has submitted an Abbreviated New Drug Application (ANDA) with the U.S. Food …

Allergan drops after Watson files for generic Restasis
Wed, 22 Jan 2014 14:54:05 GMT

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