CVS Puts Pop Ahead of Congress Appearance

The April 50 put has seen heavy trading

Managing Editor
Mar 27, 2019 at 3:20 PM
facebook X logo linkedin

Drugstore name CVS Health Corp (NYSE:CVS) is lower with Centene (CNC) today, after the latter announced its plan to acquire WellCare Health (WCG) for an estimated $17.3 billion. CVS is also scheduled to appear before congress next week -- alongside major pharmaceutical names -- to discuss high prescription drug prices.

At last check, CVS Health stock is down 2.8% at $53.85 in afternoon trading -- and one of the worst performers on the New York Stock Exchange (NYSE). CVS has fallen 15% year-to-date, and is eerily close to its early March lows. This past week, the 20-day moving average has been pushing the shares even lower, and now put options traders have been flocking toward the drugstore chain. 

Digging deeper, puts are going at three times the expected pace, with more than 47,000 already crossing the tape today. The April 50 put is the most active, where 26,805 contracts have traded hands. In other terms, these traders may expect CVS stock to fall below $50 by or before its expiration on Thursday, April 18. Making this activity even more notable is the fact that call buying has by far been the more popular strategy in recent weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI