Covidien (COV) Offering Possible 16.28% Return Over the Next 40 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 16.28% return on risk over the next 40 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 $0.70 would be kept by the premium seller. The risk of $4.30 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 58.92 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

Medtronic Reveals Restructuring Plan post Covidien Buy
Mon, 13 Oct 2014 18:10:02 GMT

Medtronic seeks EU approval for $43 bln Covidien deal
Mon, 13 Oct 2014 13:04:37 GMT
Reuters – UK Focus – U.S. medical equipment maker Medtronic has asked European Union antitrust regulators to approve its proposed $43 billion purchase of Irish peer Covidien Plc, the European Commission said on Monday. The …

Medtronic seeks EU approval for $43 bln Covidien deal
Mon, 13 Oct 2014 13:04:37 GMT
Reuters – U.S. medical equipment maker Medtronic has asked European Union antitrust regulators to approve its proposed $43 billion purchase of Irish peer Covidien Plc, the European Commission said on Monday. The …

Covidien Gets FDA Clearance for Patient Monitoring System
Fri, 10 Oct 2014 16:20:03 GMT

Announcement Under Irish Takeover Rules Relevant Securities In Issue – October 10, 2014
Fri, 10 Oct 2014 12:29:19 GMT

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