CVS Offering Possible 14.68% Return Over the Next 40 Calendar Days

CVS's most recent trend suggests a bullish bias. One trading opportunity on CVS is a Bull Put Spread using a strike $62.50 short put and a strike $57.50 long put offers a potential 14.68% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $62.50 by expiration. The full premium credit of $0.64 would be kept by the premium seller. The risk of $4.36 would be incurred if the stock dropped below the $57.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for CVS is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for CVS is bullish.

The RSI indicator is at 69.89 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 CVS

Final Glance: Drugstore companies
Mon, 11 Nov 2013 23:06:53 GMT
AP – Shares of some top drugstore companies were mixed at the close of trading: CVSCaremark rose $.15 or .2 percent, to $63.93. Rite Aid fell $.03 or .6 percent, to $5.22. Walgreen fell $.25 or .4 percent, …

Business events scheduled for Tuesday
Mon, 11 Nov 2013 18:57:27 GMT

Business events scheduled for Tuesday
Mon, 11 Nov 2013 18:57:27 GMT
AP – Major business and economic events scheduled for Tuesday: WARSAW— International shale gas experts and geologists hold a two-day conference on the potential of this energy carrier, on the sidelines of the …

Midday Glance: Drugstore companies
Mon, 11 Nov 2013 18:25:55 GMT
AP – Shares of some top drugstore companies are down at 1 p.m.: CVSCaremark fell $.01 or percent, to $63.78. Rite Aid fell $.01 or .2 percent, to $5.24. Walgreen fell $.08 or .1 percent, to $59.62.

How These Health Care Stocks Can Benefit From Obamacare
Mon, 11 Nov 2013 16:59:59 GMT
Motley Fool – A look at the measures that CVS, Walgreen, and Express Scripts are taking to deal with changes brought on by Obamacare.

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