Covidien (COV) Offering Possible 13.64% Return Over the Next 26 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 13.64% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock dropped below the $85.00 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 above 80 which suggests that the stock is in overbought 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 Covidien

Announcement under Irish Takeover Rules Relevant Securities in Issue – June 24, 2014
Tue, 24 Jun 2014 12:30:00 GMT
Business Wire – In accordance with Rule 2.10 of the Irish Takeover Rules, Covidien plc confirms that, as of the close of business on June 23, 2014, the Company’s issued share capital, excluding treasury shares, consisted of 451,486,007 ordinary shares, par value US$0.20 per share .

[$$] Covidien Again Sues J&J Unit Over Surgical-Tool Patents
Tue, 24 Jun 2014 12:09:33 GMT

7:31 am Covidien files patent infringement lawsuit over Johnson & Johnson's (JNJ) Ethicon's ultrasonic surgical devices
Tue, 24 Jun 2014 11:31:00 GMT

Covidien Files Patent Infringement Lawsuit over Ethicon's Ultrasonic Surgical Devices
Tue, 24 Jun 2014 11:30:00 GMT
Business Wire – Covidien today announced that it filed a lawsuit in the U.S. District Court for the District of Connecticut against Ethicon Endo-Surgery, Inc., a Johnson & Johnson company.

Ernst & Young’s Jeanneret Says U.S. Leading M&A Rebound (Audio)
Tue, 24 Jun 2014 11:12:59 GMT

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