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$CVS - setting up nicely for an explosive move.
CVS Health Corporation
Long
$CVS - setting up nicely for an explosive move.
By UDAY_C_Santhakumar
Wizard
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Updated
Aug 18, 2020
5
Cheer
Cheer
9
9
Aug 10, 2020
Squeezing here.
1. IVP - 11%
2. IV - 29%
The breakout can be significant.
The options are a bit manipulated. So, build your position accordingly.
Buy the Volatility here. Spreads such as Back Ratio Spread, Buying Iron Condor / Iron Fly.
Below is an example.
For less experienced trader
BUY +1 IRON CONDOR CVS 100 (Weeklys) 11 SEP 20 65.5/69.5/65.5/61.5 CALL/PUT @2.50 LMT
For an experienced trader
BUY +1 1/1/-1 CUSTOM CVS 100 (Weeklys) 11 SEP 20/11 SEP 20/11 SEP 20 65/65/61 CALL/PUT/PUT @3.20 LMT
Both are done for a debit. Strictly close 1 week prior to expiration.
The risk is, This stock can squeeze for a month. However I feel like this will explode in 2 weeks.
Aug 18, 2020
Comment
Be ready to roll the trade next week. Rolling each leg at optimal time.
Sep 4, 2020
Comment
Profitable on both examples. I am not going to carry this to next week. Low probability to make any money next week.
Good Luck.
Beyond Technical Analysis
ucsgears
UDAY_C_Santhakumar
Wizard
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Uday C Santhakumar
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