Best Stock on the Market

Put Spread on CVS on 6/22/2016

Broken Support on CVSCVS Health Corporation (CVS) provides integrated pharmacy health care services.

It operates through Pharmacy Services and Retail/LTC segments.

The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. This segment serves employers, insurance companies, unions, government employee groups, health plans, managed Medicaid plans and plans offered on public and private exchanges, other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS Pharmacy, CVS Specialty, Accordant, SilverScript, NovoLogix, Coram, Navarro Health Services, and Advanced Care Scripts names. As of December 31, 2015, it operated 24 retail specialty pharmacy stores, 11 specialty mail order pharmacies and 5 mail order dispensing pharmacies, and 83 branches for infusion and enteral services.

The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. It operates 9,655 retail stores in 49 states, the District of Columbia, Puerto Rico, and Brazil primarily under the CVS Pharmacy, CVS, Longs Drugs, Navarro Discount Pharmacy, and Drogaria Onofre names; online retail pharmacy Websites; and 32 onsite pharmacy stores, long-term care pharmacy operations, and retail health care clinics. 

Shares have fallen through a major support level and lower share prices are expected for this stock.

 

52-Weeks Trading Range: $81.37 - $113.65

Last Trade: $93.21

Trade

  • Buy 1 July $94.00 Put at $2.10
  • Sell 1 July $90.00 Put at $0.80
  • For a net debit of $1.30

Profit/Loss Analysis

  • Breakeven at $92.70
  • Maximum profit is $270.00 at strike of $90.00
  • Maximum loss is ($130.00) at strike of $94.00

Closing Summary

  • Sold 1 July $94.00 Put at $0.00
  • Bought 1 July $90.00 Put at $0.00

Position closed on 7/18/2016 at price of $0.00 with a -100.00% loss in 25 days.

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