Covidien (COV) Offering Possible 12.36% Return Over the Next 31 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $82.50 short put and a strike $77.50 long put offers a potential 12.36% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $82.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $77.50 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 47.12 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

93% of U.S., 92% of New Yorkers Unaware that Stroke is Second Leading Cause of Death Globally
Wed, 22 Oct 2014 12:06:02 GMT
noodls – Covidien – World Stroke Organization Survey Shows Low Knowledge of Stroke Prevention, Treatment Options NEW YORK–(BUSINESS WIRE)–Oct. 22, 2014– Despite its being the second leading cause of death worldwide, …

93% of U.S., 92% of New Yorkers Unaware that Stroke is Second Leading Cause of Death Globally
Wed, 22 Oct 2014 12:00:00 GMT
Business Wire – Despite its being the second leading cause of death worldwide, 93% of Americans still do not recognize the global threat stroke poses and the warning signs associated with it, acco

Monday’s Notable Options Activity
Tue, 21 Oct 2014 12:33:28 GMT

Covidien faces huge bearish trade
Tue, 21 Oct 2014 10:14:19 GMT

[$$] Covidien Wins Patent Injunction Against J&J
Fri, 17 Oct 2014 16:52:35 GMT

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