Lorillard Offering Possible 3.52% Return Over the Next 11 Calendar Days

Lorillard's most recent trend suggests a bullish bias. One trading opportunity on Lorillard is a Bull Put Spread using a strike $50.00 short put and a strike $45.00 long put offers a potential 3.52% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $50.00 by expiration. The full premium credit of $0.17 would be kept by the premium seller. The risk of $4.83 would be incurred if the stock dropped below the $45.00 long put 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 below 20 which suggests that the stock is in oversold territory.

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

Tobacco Stocks Lead IBD's Dividend Screen
Tue, 05 Nov 2013 22:25:00 GMT
Investor's Business Daily – Tobacco Stocks Lead IBD's Dividend Screen

Imperial Tobacco confident of catching e-cigarette revolution
Tue, 05 Nov 2013 09:09:09 GMT
Financial Times – The chief executive of Imperial Tobacco denied claims that the tobacco group had fallen behind its rivals in the race to gain a foothold in the fast growing market for e-cigarettes. Alison Cooper, chief …

The Tobacco Company Gaining Ground With Technology
Mon, 04 Nov 2013 14:28:01 GMT
Motley Fool – With e-cigarettes gaining popularity, this company is solidifying its position at the top of the market.

FDA Could Send Lorillard Shares Up In Smoke
Fri, 01 Nov 2013 18:36:34 GMT
Seeking Alpha – A Food and Drug Administration review of menthol cigarettes could put Lorillard ( LO ) shareholders in the poor house. Investors need to sell covered calls now to protect their downside risk. Any adverse …

Lorillard: Investors Should Wait For Pullback
Thu, 31 Oct 2013 18:08:05 GMT
Seeking Alpha – Lorillard ( LO ) is among the leading tobacco companies of the U.S. The company has delivered a healthy financial performance and owns a dominant market share in the U.S. The company is also the leading …

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