Reynolds American (RAI) Offering Possible 13.64% Return Over the Next 11 Calendar Days

Reynolds American's most recent trend suggests a bearish bias. One trading opportunity on Reynolds American is a Bear Call Spread using a strike $55.00 short call and a strike $60.00 long call offers a potential 13.64% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $55.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock rose above the $60.00 long call strike price.

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

The RSI indicator is at 72.26 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 Reynolds American

Tobacco Tales: Will Lorillard and Reynolds Merge?
Tue, 11 Mar 2014 14:16:01 GMT

Reynolds, Tobacco Stocks Light Up Amid Merger Rumors
Mon, 10 Mar 2014 21:59:00 GMT

Market report: BAT rises on deal hopes
Mon, 10 Mar 2014 19:00:18 GMT

Reynolds American advances after Citi says could be takeover target
Mon, 10 Mar 2014 14:13:43 GMT

Could This Massive Tobacco Merger Be More Than Just Rumor?
Sun, 09 Mar 2014 14:01:59 GMT

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