CVS Offering Possible 7.53% Return Over the Next 8 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 7.53% return on risk over the next 8 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 $0.35 would be kept by the premium seller. The risk of $4.65 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 at 43.93 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for CVS

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Motley Fool – Walgreen, CVS Caremark, and Rite Aid have all had tremendous years in 2013, but could higher profits be in store for 2014?

CVS Caremark (CVS) Gets Leerink Rating Boost
Thu, 09 Jan 2014 14:11:00 GMT
TheStreet – CVS Caremark (CVS) shares are drifting higher after receiving a Leerink Swann positive rating.

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