Covidien (COV) Offering Possible 9.89% Return Over the Next 23 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 9.89% return on risk over the next 23 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 $0.45 would be kept by the premium seller. The risk of $4.55 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 49.87 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

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

Covidien plc to Report Fourth-Quarter and Fiscal 2014 Results on November 5, 2014
Thu, 25 Sep 2014 11:00:00 GMT
Business Wire – Covidien plc will report fourth-quarter and fiscal 2014 results on November 5. The company will host a conference call for investors at 8:30 a.m. ET. The call can be ac

Announcement under Irish Takeover Rules Relevant Securities in Issue – September 24, 2014
Wed, 24 Sep 2014 12:38:00 GMT

Announcement under Irish Takeover Rules Relevant Securities in Issue – September 24, 2014
Wed, 24 Sep 2014 12:38:00 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 September 23, 2014, the Company’s issued share capital, excluding treasury shares, consisted of 451,928,666 ordinary shares, par value US$0.20 per share .

BK, Tim Hortons: Inversion rules no deal killer
Tue, 23 Sep 2014 22:58:29 GMT

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