Reynolds American (RAI) Offering Possible 6.38% 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 6.38% 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 $0.30 would be kept by the premium seller. The risk of $4.70 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 77.54 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

Goldman muscles past M&A rivals on Reynolds deal
Fri, 04 Nov 2016 16:21:13 GMT

Litigation trolls go federal after getting their due in Delaware
Fri, 04 Nov 2016 14:17:31 GMT

Reynolds' $47 Billion Offer Will Make Phillip Morris No. 2 in Tobacco
Fri, 04 Nov 2016 14:06:00 GMT

October’s merger mania looks less impressive now final results are tallied
Thu, 03 Nov 2016 16:07:07 GMT

Reynolds American Announces Committee of Directors for BAT Offer
Wed, 02 Nov 2016 14:06:21 GMT

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