CVS Offering Possible 15.74% Return Over the Next 24 Calendar Days

CVS's most recent trend suggests a bullish bias. One trading opportunity on CVS is a Bull Put Spread using a strike $60.00 short put and a strike $55.00 long put offers a potential 15.74% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $60.00 by expiration. The full premium credit of $0.68 would be kept by the premium seller. The risk of $4.32 would be incurred if the stock dropped below the $55.00 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 above 80 which suggests that the stock is in overbought territory.

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

CVS Caremark initiated with an Outperform at FBR Capital
Thu, 24 Oct 2013 09:51:50 GMT
theflyonthewall.com – Target $69.

Final Glance: Drugstore companies
Wed, 23 Oct 2013 22:10:31 GMT
AP – Shares of some top drugstore companies were mixed at the close of trading: CVSCaremark rose $.08 or .1 percent, to $61.46. Rite Aid fell $.04 or .8 percent, to $5.12. Walgreen rose $.10 or .2 percent, …

Ecuador Judge Testifies to Taking Bribes in Chevron Suit
Wed, 23 Oct 2013 21:19:22 GMT
Bloomberg – A former Ecuadorean judge who presided over a pollution case against Chevron Corp. testified that he and a colleague who issued a $19 billion judgment against the company in the environmental lawsuit were …

Midday Glance: Drugstore companies
Wed, 23 Oct 2013 17:20:10 GMT
AP – Shares of some top drugstore companies are mixed at 1 p.m.: CVSCaremark rose $.22 or .4 percent, to $61.60. Rite Aid fell $.03 or .5 percent, to $5.14. Walgreen fell $.15 or .3 percent, to $58.54.

McKesson closes in on Celesio deal
Wed, 23 Oct 2013 15:27:30 GMT
Financial Times – McKesson plans to announce as soon as Thursday an agreement to buy a majority stake in German drug wholesaler Celesio, valuing its debt and equity at more than $8bn and giving the US drug distributor a …

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