CVS Offering Possible 5.26% Return Over the Next 25 Calendar Days

CVS's most recent trend suggests a bullish bias. One trading opportunity on CVS is a Bull Put Spread using a strike $57.50 short put and a strike $52.50 long put offers a potential 5.26% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $57.50 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $52.50 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 76.68 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
Tue, 22 Oct 2013 22:03:39 GMT
AP – Shares of some top drugstore companies were mixed at the close of trading: CVSCaremark rose $1.00 or 1.7 percent, to $61.38. Rite Aid fell $.09 or 1.7 percent, to $5.16. Walgreen rose $.31 or .5 percent, …

Reckitt's unwanted drugs unit is a poisoned chalice for buyers
Tue, 22 Oct 2013 19:14:45 GMT
Financial Times – Ever since heroin was first marketed by Bayer of Germany more than a century ago as a treatment for pain relief, the drug has generated a fierce debate about its frequent abuse. In the modern era, the …

Midday Glance: Drugstore companies
Tue, 22 Oct 2013 17:17:37 GMT
AP – Shares of some top drugstore companies are mixed at 1 p.m.: CVSCaremark rose $.20 or .3 percent, to $60.58. Rite Aid fell $.13 or 2.5 percent, to $5.12. Walgreen rose $.05 or .1 percent, to $58.43.

CVS tries pushing loyalty cards to next level
Tue, 22 Oct 2013 16:41:57 GMT
Big Data Download – http://d.yimg.com/hd/cnbc2/lotus/1382457146138_750_21yFZqoPjnbf1_1_0.jpg?s=761160f74557888c3f0857388db47b94&c=34e4cff4b772b752720e9252feba28af&a=cnbc2&mr=0

Better Buy: Walgreen, CVS, or Rite Aid?
Tue, 22 Oct 2013 15:28:03 GMT
Motley Fool – In the competitive retail pharmacy market, three of the biggest players — Rite Aid, Walgreen, and CVS — face off for market share. Is one a better buy than the other?

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