Covidien (COV) Offering Possible 11.11% Return Over the Next 30 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 11.11% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $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 dropped below the $82.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Covidien is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Covidien is bullish.

The RSI indicator is at 57.83 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

Covidien Acquires Reverse Medical Corporation
Fri, 22 Aug 2014 11:00:00 GMT
Business Wire – Covidien plc today announced it has acquired Reverse Medical Corporation, a privately held medical device company focused on expanding the management of vascular disease.

David Marcus Discusses the Policy Aspects of Corporate Inversions
Thu, 21 Aug 2014 21:18:30 GMT

[$$] FDA Approves Changes to Production of Recalled Covidien Devices
Thu, 21 Aug 2014 11:45:18 GMT

7:01 am Covidien announces FDA approved changes to manufacturing process for polytetrafluoroethylene coating on delivery wire
Thu, 21 Aug 2014 11:01:00 GMT

FDA Approves Changes to Manufacturing Process for Covidien’s Pipeline™ Embolization Device
Thu, 21 Aug 2014 11:00:00 GMT
Business Wire – Covidien plc today announced that the U.S. Food and Drug Administration has approved changes to the manufacturing process for the polytetrafluoroethylene c

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