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.

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