Lorillard (LO) Offering Possible 6.84% Return Over the Next 18 Calendar Days

Lorillard's most recent trend suggests a bearish bias. One trading opportunity on Lorillard is a Bear Call Spread using a strike $65.00 short call and a strike $70.00 long call offers a potential 6.84% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $65.00 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $70.00 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 53.38 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

How analysts fared by stock and sector in the first half of 2014
Wed, 02 Jul 2014 06:52:00 GMT

Lorillard Bulls Light Up on Reynolds Deal Speculation
Tue, 01 Jul 2014 13:38:58 GMT

Will Renewed Merger Talks Help Reynolds American (RAI) Stock and Lorillard (LO) Stock Today?
Mon, 30 Jun 2014 14:42:00 GMT

Philip Morris Cuts Outlook on Weak Pricing, Fx Woes
Fri, 27 Jun 2014 17:20:04 GMT

Philip Morris Cuts Earnings Forecast, Acquires E-Cigarettes Maker
Thu, 26 Jun 2014 17:40:00 GMT

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