Cognizant (CTSH) Offering Possible 16.28% Return Over the Next 33 Calendar Days

Cognizant's most recent trend suggests a bearish bias. One trading opportunity on Cognizant is a Bear Call Spread using a strike $52.50 short call and a strike $57.50 long call offers a potential 16.28% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock rose above the $57.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Cognizant 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 Cognizant 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 Cognizant

Infosys Plunges On Weak 2014 Sales Outlook, Unlikely To Sink Industry
Thu, 13 Mar 2014 12:52:00 GMT

Infosys Dives, Cognizant Finds Support After Warning
Wed, 12 Mar 2014 23:01:00 GMT
Investor's Business Daily – Bangalore, India-based software developer Infosys (INFY) stumbled Wednesday after management softened expectations for its fiscal fourth quarter. The stock tumbled 6%, slicing below its 10-week moving …

Morning Movers: Motorola Downgrade, Cognizant, Semiconductors
Wed, 12 Mar 2014 15:15:00 GMT

Stocks Open Broadly Lower; Verifone Provides A Bright Spot
Wed, 12 Mar 2014 14:31:00 GMT

Cognizant downgraded to Hold from Buy at Berenberg
Tue, 11 Mar 2014 12:50:51 GMT

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