CVS Offering Possible 12.61% Return Over the Next 36 Calendar Days

CVS's most recent trend suggests a bearish bias. One trading opportunity on CVS is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 12.61% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.56 would be kept by the premium seller. The risk of $4.44 would be incurred if the stock rose above the $75.00 long call strike price.

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

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

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LATEST NEWS for CVS

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Ex-Dividend Alert: 4 Stocks Going Ex-Dividend Tuesday: GHI, ARDC, CODI, CVS
Fri, 17 Jan 2014 15:00:00 GMT
TheStreet – GHI ARDC CODI CVS are going ex-dividend Tuesday, Tuesday, Jan. 21, 2014, 5:00 AM ET

CVS Caremark completes $2.1B acquisition of Coram
Fri, 17 Jan 2014 14:29:59 GMT

CVS Caremark completes $2.1B acquisition of Coram
Fri, 17 Jan 2014 14:29:59 GMT
AP – Drugstore chain CVS Caremark Corp. completed its $2.1 billion acquisition of the drug infusion business Coram LLC, and it expects the deal to start helping earnings next year. The Woonsocket, R.I., company …

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