Covidien (COV) Offering Possible 6.38% Return Over the Next 19 Calendar Days

Covidien's most recent trend suggests a bearish bias. One trading opportunity on Covidien is a Bear Call Spread using a strike $92.50 short call and a strike $97.50 long call offers a potential 6.38% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $92.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $97.50 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 39.14 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

UPCOMING DEADLINE: Levi & Korsinsky, LLP Reminds Investors of Covidien plc of Class Action Against Its Board of Directors in Connection With the Sale of the Company to Medtronic, Inc. — COV
Mon, 29 Sep 2014 20:18:30 GMT
GlobeNewswire – NEW YORK — Levi & Korsinsky notifies investors of Covidien plc (“Covidien” or “the Company”) of claims of breaches of fiduciary duty and other violations of state law in connection …

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Mon, 29 Sep 2014 19:12:00 GMT

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US stocks finish lower after topsy-turvy week
Fri, 26 Sep 2014 23:02:24 GMT

Dealpolitik: How New Inversion Rules Affect Medtronic's Deal With Covidien
Thu, 25 Sep 2014 16:21:30 GMT

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