Reynolds American (RAI) Offering Possible 13.64% Return Over the Next 23 Calendar Days

Reynolds American's most recent trend suggests a bullish bias. One trading opportunity on Reynolds American is a Bull Put Spread using a strike $42.50 short put and a strike $37.50 long put offers a potential 13.64% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $42.50 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 dropped below the $37.50 long put strike price.

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

The RSI indicator is at 64.87 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

Advisory: R.J. Reynolds Tobacco Company signs vapor technology term sheet with British American Tobacco
Tue, 22 Sep 2015 11:32:00 GMT
PR Newswire – WINSTON-SALEM, N.C., Sept. 22, 2015 /PRNewswire/ — R.J. Reynolds Tobacco Company has issued the following release: “R.J. Reynolds Tobacco Company signs vapor technology term sheet with British American …

BAT Beefs Up E-Cigarette Business
Tue, 22 Sep 2015 11:13:56 GMT

BAT to buy Polish e-cigarette firm, signs deal with RJ Reynolds
Tue, 22 Sep 2015 10:30:18 GMT

BAT to buy Polish e-cigarette firm, signs deal with RJ Reynolds
Tue, 22 Sep 2015 10:28:51 GMT

BAT to buy Polish e-cigarette firm, inks deal with Reynolds American
Tue, 22 Sep 2015 09:36:41 GMT

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