Forest Labs (FRX) Offering Possible 6.38% Return Over the Next 22 Calendar Days

Forest Labs's most recent trend suggests a bullish bias. One trading opportunity on Forest Labs is a Bull Put Spread using a strike $97.50 short put and a strike $92.50 long put offers a potential 6.38% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $97.50 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 dropped below the $92.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Forest Labs 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 Forest Labs is bullish.

The RSI indicator is at 77.77 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 Forest Labs

Affiliated Managers Group Set to Join S&P 500; LaSalle Hotel Properties, Rayonier Advanced Materials, TimkenSteel, Belden to Join the S&P MidCap 400; Others to Join S&P SmallCap 600
Tue, 24 Jun 2014 22:50:00 GMT
PR Newswire – NEW YORK, June 24, 2014 /PRNewswire/ — S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices: S&P MidCap 400 constituent Affiliated Managers …

Forest Laboratories Reports Positive Data on Viibryd
Tue, 24 Jun 2014 21:20:06 GMT

After-hours buzz: Bristol-Myers Squibb, Walgreen & More
Tue, 24 Jun 2014 21:00:00 GMT

Actavis and Forest Announce Tentative Election Deadline of June 27, 2014
Tue, 24 Jun 2014 12:30:00 GMT
Business Wire – Actavis plc and Forest Laboratories, Inc. today announced that the tentative election deadline for Forest stockholders to elect the form of consideration they wish to receive in Actavis’ planned acquisition of Forest is 5:00 p.m., Eastern time, on June 27, 2014 .

Actavis and Forest Announce Tentative Election Deadline Of June 27, 2014
Tue, 24 Jun 2014 12:30:00 GMT
PR Newswire – DUBLIN and NEW YORK, June 24, 2014 /PRNewswire/ — Actavis plc (ACT) and Forest Laboratories, Inc. (FRX) today announced that the tentative election deadline for Forest stockholders to elect the form of consideration they wish to receive in Actavis' planned acquisition of Forest is 5:00 p.m., Eastern time, on June 27, 2014 (the “Election Deadline”). The Election Deadline may be extended, in which case Actavis and Forest will issue a press release announcing the new election deadline. Subject to regulatory approval and other customary closing conditions, the closing date of the acquisition is expected to be July 1, 2014. Forest stockholders who hold shares through a bank, broker, trust company or other nominee may have an earlier election deadline and should carefully review any instructions received from their bank, broker, trust company or other nominee. As previously announced, Forest stockholders can elect to receive, for each of their shares of Forest common stock, either cash, Actavis ordinary shares, or a combination of cash and Actavis ordinary shares. The cash and stock elections will be subject to proration and adjustment procedures, which are further described in the Joint Proxy Statement/Prospectus of Actavis and Forest, dated May 2, 2014. The documents necessary for Forest stockholders to make an election for their merger consideration were mailed beginning on May 30, 2014.

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