Covidien (COV) Offering Possible 9.89% Return Over the Next 11 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $92.50 short put and a strike $87.50 long put offers a potential 9.89% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $92.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock dropped below the $87.50 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 53.99 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

Announcement under Irish Takeover Rules Relevant Securities in Issue – October 7, 2014
Tue, 07 Oct 2014 12:30:00 GMT

Announcement under Irish Takeover Rules Relevant Securities in Issue – October 7, 2014
Tue, 07 Oct 2014 12:30:00 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 October 6, 2014, the Company’s issued share capital, excluding treasury shares, consisted of 452,488,239 ordinary shares, par value US$0.20 per share .

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