WellPoint (WLP) Offering Possible 7.63% Return Over the Next 9 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 $103.00 long call offers a potential 7.63% return on risk over the next 9 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 $0.39 would be kept by the premium seller. The risk of $5.11 would be incurred if the stock rose above the $103.00 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 34.27 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 WellPoint

Updated Research Report on Health Net
Thu, 10 Apr 2014 20:30:06 GMT

Obamacare enrollment to surpass 7.5 million -U.S. official
Thu, 10 Apr 2014 18:58:02 GMT
Reuters – More than 7.5 million people are expected to sign up for private health coverage this year under President Barack Obama's healthcare law, the top U.S. health official said on Thursday. The number, which surpasses the 7.1 million total Obama announced just last week, includes 400,000 people allowed to sign up for private health plans through a federal marketplace after a March 31 deadline because they had not been able to complete their enrollment applications on time. “We expect that to continue to grow,” said U.S. Health and Human Services Secretary Kathleen Sebelius, who released the latest figures during testimony before the Senate Finance Committee. Sebelius said traffic on HealthCare.gov, the federal enrollment website for consumers in 36 states, surged to 4.8 million visitors on March 31.

Paying Obamacare's 3.8% Investment Tax? Like Your Investments, Keep Your Investments
Thu, 10 Apr 2014 05:25:00 GMT
Forbes – Obamacare's 3.8% Net Investment Income Tax Could Hit You Hard at Tax Time. IRS Highlights Key Rules

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.

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.