Covidien (COV) Offering Possible 11.11% Return Over the Next 15 Calendar Days

Covidien's most recent trend suggests a bearish bias. One trading opportunity on Covidien is a Bear Call Spread using a strike $87.50 short call and a strike $92.50 long call offers a potential 11.11% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $87.50 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $92.50 long call strike price.

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

The RSI indicator is at 28.42 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 Covidien

Wall Street Transcript Interview with Terrance H. Gregg, the CEO of Dexcom, Inc. (DXCM)
Fri, 01 Aug 2014 15:58:00 GMT

COVIDIEN PLC Files SEC form 10-Q, Quarterly Report
Wed, 30 Jul 2014 20:01:39 GMT

Analysis – Ireland has too much to lose to deter U.S. companies re-homing
Wed, 30 Jul 2014 13:19:01 GMT

invendo medical Appoints Nachum (Homi) Shamir To The Company's Board Of Directors
Wed, 30 Jul 2014 12:22:00 GMT
PR Newswire – NEW YORK and KISSING, Germany, July 30, 2014 /PRNewswire/ — invendo medical GmbH, manufacturer and distributor of a single use and computer-assisted (“robotic”) colonoscopy system, today announced the appointment of Nachum (Homi) Shamir, a worldwide recognized medical device executive, as a new member of its supervisory board. Mr. Shamir is a highly respected global visionary in the medical device industry. In his most recent assignment he served as President and Chief Executive Officer at Given Imaging Ltd. (NASDAQ/TASE: GIVN), the pioneer in capsule endoscopy technology which revolutionized the way gastroenterologists diagnose and monitor diseases of the GI tract through the development and marketing of a game-changing diagnostic tool in the form of small capsule cameras (PillCam). Under Mr. Shamir's tenure Given Imaging has grown revenues from $ 85 million annually to close to $200 million and achieved significant profitability based on diversified GI product portfolios and a globalized commercial footprint.

Merck CEO to CNBC: US tax system broken
Tue, 29 Jul 2014 13:40:00 GMT
CNBC – CNBC's Meg Tirrell spoke with Merck CEO Ken Frazier after earnings. Frazier spoke about the competition in hepatitis C, industry consolidation and shared his opinions on the U.S. tax system.

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