Reynolds American (RAI) Offering Possible 23.46% Return Over the Next 23 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 $57.50 short call and a strike $62.50 long call offers a potential 23.46% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $4.05 would be incurred if the stock rose above the $62.50 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 32.6 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

Jury Orders Reynolds American to Pay $23.6 Billion. Time to Sell?
Wed, 23 Jul 2014 20:08:08 GMT

Lorillard Investor Sues to Halt $25 Billion Reynolds Deal
Wed, 23 Jul 2014 15:18:21 GMT

10 countries where people smoke the most
Tue, 22 Jul 2014 15:54:29 GMT

Reynolds American Gets Burned in Tobacco Lawsuit
Tue, 22 Jul 2014 14:02:03 GMT

Marlboro maker Altria's 2Q profit stays flat
Tue, 22 Jul 2014 13:58:47 GMT

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