Reynolds American (RAI) Offering Possible 20.48% Return Over the Next 29 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 20.48% return on risk over the next 29 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 $0.85 would be kept by the premium seller. The risk of $4.15 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 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 Reynolds American

Can Reynolds Win Against FDA's Product Ban?
Wed, 16 Sep 2015 22:30:10 GMT

FDA Halts Sales of 4 Reynolds American Brands
Wed, 16 Sep 2015 20:39:36 GMT

4:53 pm Reynolds American announces disagreement with FDA ruling on four of its cigarette brands; ‘We're examining all of our options at this time'
Tue, 15 Sep 2015 20:53:00 GMT

Advisory: R.J. Reynolds Tobacco Company disagrees with FDA ruling
Tue, 15 Sep 2015 20:49:00 GMT
PR Newswire – WINSTON-SALEM, N.C., Sept. 15, 2015 /PRNewswire/ — R.J. Reynolds Tobacco Company has issued the following release: “R.J. Reynolds Tobacco Company disagrees with FDA ruling on four of its cigarette …

Tobacco: Bad for health, good for portfolio?
Tue, 15 Sep 2015 19:46:00 GMT

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