Reynolds American (RAI) Offering Possible 13.64% Return Over the Next 29 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 $60.00 short call and a strike $65.00 long call offers a potential 13.64% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $60.00 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 $65.00 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 42.45 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

Lorillard Shares Fizzle Out, But Is It Still a Buy?
Sun, 20 Jul 2014 21:04:06 GMT

Reynolds hit with $23.6bn damages bill
Sun, 20 Jul 2014 15:28:21 GMT
Financial Times – RJ Reynolds faces a potential bill of $23.6bn after a US court ordered the country's second-largest tobacco company to pay punitive damages following a lawsuit filed by the wife of a smoker who died of …

Florida widow wins $23.6 bn in RJ Reynolds tobacco payout
Sun, 20 Jul 2014 09:04:29 GMT

RJ Reynolds vows to fight $23.6B in damages
Sun, 20 Jul 2014 07:06:28 GMT

RJ Reynolds vows to fight $23.6B in damages
Sun, 20 Jul 2014 07:06:28 GMT

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