CVS (CVS) Offering Possible 11.86% Return Over the Next 22 Calendar Days

CVS's most recent trend suggests a bearish bias. One trading opportunity on CVS is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 11.86% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.53 would be kept by the premium seller. The risk of $4.47 would be incurred if the stock rose above the $80.00 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 at 39.63 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

[$$] Preview
Sat, 26 Apr 2014 06:57:00 GMT

[$$] Next Week
Sat, 26 Apr 2014 06:53:00 GMT

Market preps for avalanche of earnings, economic data
Fri, 25 Apr 2014 22:51:03 GMT

Chu's earnings season scorecard
Fri, 25 Apr 2014 19:44:00 GMT

Midday Glance: Drugstore companies
Fri, 25 Apr 2014 17:23:13 GMT
AP – Shares of some top drugstore companies are up at 1 p.m.: CVSCaremark rose $.41 or .6 percent, to $66.52. Rite Aid rose $.08 or 1.3 percent, to $5.68. Walgreen rose $.32 or .5 percent, to $59.54.

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