Forest Labs Offering Possible 12.36% Return Over the Next 36 Calendar Days

Forest Labs's most recent trend suggests a bearish bias. One trading opportunity on Forest Labs is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 12.36% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $72.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $77.50 long call strike price.

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

The RSI indicator is at 73.93 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

Forest Laboratories – Aptalis Deal Sparks More Enthusiasm
Sun, 19 Jan 2014 09:20:34 GMT
Seeking Alpha – Investors in Forest Laboratories ( FRX ) reacted with great enthusiasm to the news of last week that it will acquire Aptalis, in a deal which will be greatly accretive to non-GAAP earnings going forward….

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Fri, 17 Jan 2014 21:27:52 GMT

UPS and Best Buy are big market movers
Fri, 17 Jan 2014 21:27:52 GMT
AP – Stocks that moved substantially or traded heavily Friday on the New York Stock Exchange and the Nasdaq Stock Market: NYSE United Parcel Service Inc., down 58 cents to $99.91 December shipping problems …

5 Stocks Moving The Health Care Sector Upward
Fri, 17 Jan 2014 17:02:00 GMT
TheStreet – TheStreet highlights 5 stocks pushing the health care sector higher today.

Ahead of the Bell: Analyst upgrades Forest Labs
Fri, 17 Jan 2014 14:19:06 GMT

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