Stumbling CVS Could Stage a Climb

The stock has been cooling off from its recent highs

Deputy Editor
Jun 15, 2021 at 3:02 PM
facebook X logo linkedin


The shares of CVS Health Corporation (NYSE:CVS) have been falling since their recent May 24 four-year high of $90.61, which the stock climbed to after three-straight months of gains. Up 1.6% to trade at $85.98 at last check, CVS is flashing a historically bullish signal on the charts. 

CVS June 15

More specifically, the equity just came within one standard deviation of its ascending 40-day moving average, after spending several months above it. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals have occurred in the past three years. CVS Health stock enjoyed a positive return one month later in 67% of those cases, averaging a 5% gain. From its current perch, a comparable move would put CVS above the $90 level and close to its aforementioned four-year high.  

Puts have been more popular than usual, too, leaving plenty of pessimism to be unwound in the options pits. This is per CVS' 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 97th percentile of its annual range. 

What's more, CVS is seeing attractively priced premiums at the moment. The security's Schaeffer's Volatility Index (SVI) of 19% sits in just the 2nd percentile of its annual range, indicating options players are pricing in low volatility expectations right now.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI