WellPoint (WLP) Offering Possible 13.12% Return Over the Next 10 Calendar Days

WellPoint's most recent trend suggests a bearish bias. One trading opportunity on WellPoint is a Bear Call Spread using a strike $97.50 short call and a strike $105.00 long call offers a potential 13.12% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $97.50 by expiration. The full premium credit of $0.87 would be kept by the premium seller. The risk of $6.63 would be incurred if the stock rose above the $105.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for WellPoint 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 WellPoint is bearish.

The RSI indicator is at 37.71 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for WellPoint

U.S. insurers still expect cuts in 2015 Medicare payments
Tue, 08 Apr 2014 17:31:28 GMT
Reuters – U.S. health insurers said on Tuesday they still expected cuts in government reimbursements for privately managed Medicare health plans for the elderly next year even after the Obama administration rolled back the steepest reductions. The government agency that oversees Medicare said late on Monday that on average, reimbursements to insurers for private Medicare plans would rise 0.4 percent, reversing what it said was a proposed cut of 1.9 percent. Republican and Democratic lawmakers had broadly opposed further cuts as well, adding pressure on the administration at a time when President Barack Obama's healthcare law was also under attack. After analyzing the final rate notice from the Centers for Medicare and Medicaid Services (CMS) and comparing it with their own models, health insurers said on Tuesday that the 2015 Medicare Advantage payment rates represented a cut to payments from 2014 levels.

Final Medicare payments to insurers ‘less worse' -analysts
Tue, 08 Apr 2014 13:02:47 GMT
Reuters – The Obama administration's announcement on Monday that it would roll back proposed cuts to privately managed Medicare plans is a positive for insurers because the final plan is “less worse” than the one proposed, Wall Street analysts said on Tuesday. The government agency that oversees Medicare said after the stock market closed on Monday that on average, reimbursements to insurers for private Medicare plans would rise 0.4 percent, reversing what it said was a proposed cut of 1.9 percent. Analyst Sheryl Skolnick of CRT Capital said the “less worse” results could lead to a bit of a relief rally in insurers' stocks on Tuesday morning. Each year, the government releases its formulas for determining how it will reimburse the insurers for plan members' procedures and doctor visits.

WellPoint Leads $13 Million California Insurance Battle
Tue, 08 Apr 2014 01:31:46 GMT
Bloomberg – WellPoint Inc. (WLP) , the second-largest U.S. health insurer, is leading companies that have poured $13.4 million into defeating a ballot initiative that would give California regulators the power to reject increases in health policy premiums. WellPoint, based in Indianapolis, gave $12.5 million and its Anthem Blue Cross unit gave $270,000 through April 2 to defeat the measure, according to data provided by MapLight, a Berkeley-based nonpartisan research organization. Oakland, California-based Kaiser Foundation Health Plan Inc. also gave $270,000. Supporters, led by Santa Monica-based Consumer Watchdog, have raised $425,521.

Obamacare at 7.1 Million: What You Need to Know
Sun, 06 Apr 2014 22:15:56 GMT

SHAREHOLDER ALERT: The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into WellPoint Inc. Regarding Possible Breaches of Fiduciary Duty
Thu, 03 Apr 2014 16:28:00 GMT
PR Newswire – NEW YORK, April 3, 2014 /PRNewswire/ — Levi & Korsinsky, LLP is investigating WellPoint Inc. (NYSE: WLP) in connection with possible claims of breaches of fiduciary duty by certain of the members of the …

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