Covidien (COV) Offering Possible 5.26% Return Over the Next 24 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $85.00 short put and a strike $80.00 long put offers a potential 5.26% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $85.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $80.00 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 at 41.01 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

Why Covidien Stock Is Still Undervalued Despite the Medtronic Deal
Thu, 24 Jul 2014 10:00:00 GMT

COVIDIEN PLC Files SEC form 8-K, Change in Directors or Principal Officers, Regulation FD Disclosure, Financial State
Tue, 22 Jul 2014 11:04:33 GMT

7:01 am Covidien announced that Bryan Hanson, currently group president Medical Devices & US, will be elevated to newly created position of group president Covidien, effective Oct 1
Tue, 22 Jul 2014 11:01:00 GMT

Covidien Announces Leadership Appointment
Tue, 22 Jul 2014 11:00:00 GMT
Business Wire – Covidien plc today announced that Bryan Hanson, who currently serves as group president, Medical Devices & U.S., will be elevated to the newly created position of group president, Covidien, effective Oct.

Covidien, Williams Companies Offer Dynamic Dividend Plays
Mon, 21 Jul 2014 20:42:00 GMT

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