Covidien (COV) Offering Possible 16.96% Return Over the Next 38 Calendar Days

Covidien's most recent trend suggests a bearish bias. One trading opportunity on Covidien is a Bear Call Spread using a strike $105.00 short call and a strike $115.00 long call offers a potential 16.96% return on risk over the next 38 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $105.00 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $8.55 would be incurred if the stock rose above the $115.00 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 50.99 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 ups stake in Covidien
Wed, 14 Jan 2015 15:00:02 GMT

Announcement under Irish Takeover Rules Relevant Securities in Issue – January 14, 2015
Wed, 14 Jan 2015 13:14:35 GMT
noodls – Announcement under Irish Takeover Rules Relevant Securities in Issue – January 14, 2015 DUBLIN, Ireland–(BUSINESS WIRE)–Jan. 14, 2015– In accordance with Rule 2.10 of the Irish Takeover Rules, Covidien …

Announcement under Irish Takeover Rules Relevant Securities in Issue – January 14, 2015
Wed, 14 Jan 2015 13:10:00 GMT

Announcement under Irish Takeover Rules Relevant Securities in Issue – January 14, 2015
Wed, 14 Jan 2015 13:10:00 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 January 13, 2015, the Company’s issued share capital, excluding treasury shares, consisted of 454,294,351 ordinary shares, par value US$0.20 per share .

Covidien plc (COV): New Analyst Report from Zacks Equity Research – Zacks Equity Research Report
Tue, 13 Jan 2015 12:00:12 GMT

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