Allergan's most recent trend suggests a bearish bias. One trading opportunity on Allergan is a Bear Call Spread using a strike $175.00 short call and a strike $185.00 long call offers a potential 5.82% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $175.00 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $9.45 would be incurred if the stock rose above the $185.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Allergan 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 Allergan is bearish.
The RSI indicator is at 63.55 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 Allergan
This Week in Biotech: Allergan Three-Peat's in a Bad Way While Agenus Impresses
Sun, 06 Jul 2014 16:32:43 GMT
Aegis Capital Believes Valeant Pharmaceuticals' Bid For Allergan Is Looking More Promising
Wed, 02 Jul 2014 14:29:39 GMT
PRESS DIGEST – Wall Street Journal – July 2
Wed, 02 Jul 2014 05:48:54 GMT
Reuters – The following are the top stories in the Wall Street Journal. * In the Supreme Court term that just concluded, Chief Justice John Roberts joined with liberal colleagues to draw some of the court's major decisions toward the middle. * James Dimon, chairman and chief executive of J.P. Morgan, told employees and shareholders he has been diagnosed with throat cancer, that the prognosis is excellent and that he will continue to be actively involved in the company during his treatment. * William Ackman's Pershing Square said it has hired Credit Suisse, known for defending companies against activist investors, to help Valeant take over Allergan.
Allergan readies defense as it fights Valeant
Tue, 01 Jul 2014 23:09:06 GMT
Allergan readies defense as it fights Valeant for votes
Tue, 01 Jul 2014 21:17:21 GMT
Related Posts
Also on Market Tamer…
Follow Us on Facebook