Covidien (COV) Offering Possible 16.28% Return Over the Next 33 Calendar Days

Covidien's most recent trend suggests a bearish bias. One trading opportunity on Covidien is a Bear Call Spread using a strike $90.00 short call and a strike $95.00 long call offers a potential 16.28% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $90.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock rose above the $95.00 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 48.06 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 Wins Patent Injunction Against J&J
Fri, 17 Oct 2014 16:52:35 GMT

U.S. District Court Grants Covidien Preliminary Injunction against Ethicon’s Harmonic ACE®+7
Fri, 17 Oct 2014 12:05:58 GMT
noodls – DUBLIN, Ireland–(BUSINESS WIRE)–Oct. 17, 2014– Covidien plc (NYSE: COV) today announced that the U.S. District Court for the District of Connecticut has granted a preliminary injunction against Ethicon …

U.S. District Court Grants Covidien Preliminary Injunction against Ethicon’s Harmonic ACE®+7
Fri, 17 Oct 2014 12:00:00 GMT
Business Wire – Covidien plc today announced that the U.S. District Court for the District of Connecticut has granted a preliminary injunction against Ethicon Endo-Surgery, Inc., a Johnson & Johnson company.

AbbVie directors recommend against Shire deal
Thu, 16 Oct 2014 13:43:00 GMT

Covidien (COV) in Focus: Stock Falls 7%
Thu, 16 Oct 2014 10:47:00 GMT

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