CVS (CVS) Offering Possible 5.04% 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 $82.50 short call and a strike $87.50 long call offers a potential 5.04% 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 $82.50 by expiration. The full premium credit of $0.24 would be kept by the premium seller. The risk of $4.76 would be incurred if the stock rose above the $87.50 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 42.93 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
Fri, 26 Sep 2014 22:02:15 GMT
AP – Shares of some top drugstore companies were up at the close of trading: CVSCaremark rose $.33 or .5 percent, to $66.44. Rite Aid rose $.10 or 1.8 percent, to $5.70. Walgreen rose $1.74 or 2.9 percent, …

[$$] CVS Settles Medicaid Reimbursement Charges
Fri, 26 Sep 2014 19:02:18 GMT

CVS Writes New Profit Prescription
Fri, 26 Sep 2014 18:16:00 GMT

Midday Glance: Drugstore companies
Fri, 26 Sep 2014 17:17:41 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.

CVS' Caremark unit settles U.S. false claims allegations
Fri, 26 Sep 2014 16:55:57 GMT
Reuters – Caremark LLC, a unit of CVS Health Corp , will pay $6 million to settle U.S. Department of Justice resolves claims that Caremark, a pharmacy benefits management company, violated the federal False Claims Act by improperly processing claims of such “dual eligible” patients. Donald Well, a former Caremark employee who brought the case to the government's attention, will receive $1.02 million plus interest under the law's whistleblower provisions. Caremark is a pharmacy benefits manager for private health plans that insured some patients who also had Medicaid coverage.

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