DailyPlay – CVS Health Corp (CVS) – May 2, 2022

View CVS Trade

Strategy Details

Strategy: Put Debit Spread

Details: Buy to Open 7 Contracts June 17, 2022 $95/$85 Put Vertical @ $2.76 Debit

Total Risk: This trade has a max risk of $1,932.00 (7 contracts x $276 per contract) 

Trend Continuation Signal: This is a bearish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 9/10

OptionsPlay Score: 145

Our trade idea for today is CVS Health Corporation (CVS). Please note that this is a bearish earnings play with CVS reporting earnings on Wednesday, May 4th. CVS is part of the Health Care sector (XLV) which it is currently underperforming on a relative basis heading into earnings. On an absolute basis, CVS has now broken below the major support level at $100 which provides evidence of further downside. Both 1M and 6M trends are now bearish and the breakdown below support provides a good risk/reward bearish opportunity.