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 9.89% return on risk over the next 37 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 $0.45 would be kept by the premium seller. The risk of $4.55 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 73.91 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
Business Highlights
Thu, 16 Jan 2014 22:01:37 GMT
AP – ___ US economy grows at 3.6 percent rate in 3rd quarter The U.S. economy grew at a 3.6 percent annual rate from July through September, the fastest since early 2012. But nearly half the growth came from …
Carlyle joins M&A flurry with J&J unit purchase
Thu, 16 Jan 2014 18:45:28 GMT
Financial Times – The Carlyle-J&J deal continues a busy start to the year for M&A in the healthcare sector after Forest Laboratories' $2.9bn acquisition of Aptalis from TPG, the private equity company, and the $1.06bn purchase …
NYSE stocks posting largest percentage increases
Thu, 16 Jan 2014 18:31:22 GMT
FOREST LABORATORIES INC Files SEC form 8-K, Entry into a Material Definitive Agreement
Wed, 15 Jan 2014 14:03:18 GMT
Suntory to Charter Deals Spur Optimism 2014 Rebound Is for Real
Tue, 14 Jan 2014 03:43:23 GMT
Bloomberg – When it comes to mergers and acquisitions, 2014 has started with a bang. Investment bankers are hoping this won’t be another year that ends with a whimper.
Related Posts
Also on Market Tamer…
Follow Us on Facebook