Covidien (COV) Offering Possible 9.89% Return Over the Next 16 Calendar Days

Covidien's most recent trend suggests a bullish bias. One trading opportunity on Covidien is a Bull Put Spread using a strike $100.00 short put and a strike $95.00 long put offers a potential 9.89% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $100.00 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 $95.00 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 above 80 which suggests that the stock is in overbought territory.

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

U.S. appeals court tosses $176 mln award for Covidien in patent case
Thu, 04 Dec 2014 19:39:37 GMT

COVIDIEN PLC Files SEC form 8-K, Other Events, Financial Statements and Exhibits
Thu, 04 Dec 2014 18:12:39 GMT

DATE CORRECTION: Chinese Ministry of Commerce Clears Medtronic Acquisition of Covidien
Thu, 04 Dec 2014 15:31:01 GMT
Thomson Reuters ONE – This is a correction of the announcement from 07:16 04.12.2014 CST. Reason for the correction: Re-issuing to correct release date as Dec. 4 MINNEAPOLIS AND DUBLIN, Ireland – Dec. 4, 2014 – Medtronic, …

Covidien-Medtronic Deal Moves Closer to the Finish Line
Thu, 04 Dec 2014 15:10:14 GMT

Chinese Ministry of Commerce Clears Medtronic Acquisition of Covidien
Thu, 04 Dec 2014 13:40:02 GMT
noodls – MINNEAPOLIS AND DUBLIN, Ireland – Dec. 4, 2014 – Medtronic, Inc. (NYSE: MDT) and Covidien plc (NYSE: COV) today announced that the Chinese Ministry of Commerce has cleared Medtronic's proposed acquisition …

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