Covidien (COV) Offering Possible 14.94% 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 $95.00 short call and a strike $100.00 long call offers a potential 14.94% 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 $95.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock rose above the $100.00 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 73.02 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

Farallon Capital initiates new position in Allergan
Thu, 06 Nov 2014 21:00:29 GMT

Covidien Conference Call Highlights
Thu, 06 Nov 2014 20:05:02 GMT

Farallon Capital adds a new position in Covidien
Thu, 06 Nov 2014 13:00:34 GMT

Covidien Announces Nine-Month Results of DURABILITY Iliac Study, Addition of Iliac Indication for EverFlex™ Stent System at VIVA 2014
Wed, 05 Nov 2014 21:13:04 GMT
noodls – EverFlex™ Self-Expanding Stent System Safe and Effective for the Treatment of Iliac Stenosis LAS VEGAS–(BUSINESS WIRE)–Nov. 5, 2014– Covidien plc (NYSE: COV) today announced nine-month results of the …

Covidien Announces Nine-Month Results of DURABILITY Iliac Study, Addition of Iliac Indication for EverFlex™ Stent System at VIVA 2014
Wed, 05 Nov 2014 21:05:00 GMT
Business Wire – Covidien plc today announced nine-month results of the DURABILITY Iliac study and addition of the iliac indication for its EverFlex™ stent at the Vascular Interventional Advances 2014 conference.

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