Lorillard (LO) Offering Possible 11.11% Return Over the Next 29 Calendar Days

Lorillard's most recent trend suggests a bearish bias. One trading opportunity on Lorillard is a Bear Call Spread using a strike $62.50 short call and a strike $67.50 long call offers a potential 11.11% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $67.50 long call strike price.

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

The RSI indicator is at 50.48 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 Lorillard

Lorillard Shares Fizzle Out, But Is It Still a Buy?
Sun, 20 Jul 2014 21:04:06 GMT

R.J. Reynolds vows to fight $23.6B in damages
Sun, 20 Jul 2014 17:43:00 GMT

Florida widow wins $23.6 bn in RJ Reynolds tobacco payout
Sun, 20 Jul 2014 09:04:29 GMT

Reynolds Hit With $23 Bln Smoker Verdict Likely To Be Cut
Sun, 20 Jul 2014 04:01:01 GMT

Reynolds Ordered to Pay $23 Billion to Smoker’s Widow
Sun, 20 Jul 2014 00:23:48 GMT

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