Lorillard (LO) Offering Possible 8.7% Return Over the Next 25 Calendar Days

Lorillard's most recent trend suggests a bullish bias. One trading opportunity on Lorillard is a Bull Put Spread using a strike $60.50 short put and a strike $55.00 long put offers a potential 8.7% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $60.50 by expiration. The full premium credit of $0.44 would be kept by the premium seller. The risk of $5.06 would be incurred if the stock dropped below the $55.00 long put strike price.

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

The RSI indicator is at 49.84 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

Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Lorillard, Inc. Stockholders
Wed, 23 Jul 2014 17:56:00 GMT
Business Wire – Kirby McInerney LLP is investigating potential claims against Lorillard, Inc. concerning the proposed acquisition of the Company by Reynolds American, Inc.

Lorillard Investor Sues to Halt $25 Billion Reynolds Deal
Wed, 23 Jul 2014 15:18:21 GMT

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Reynolds American Gets Burned in Tobacco Lawsuit
Tue, 22 Jul 2014 14:02:03 GMT

Marlboro maker Altria's 2Q profit stays flat
Tue, 22 Jul 2014 13:58:47 GMT

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