CVS Health (CVS) popped immediately after reporting fourth-quarter earnings Wednesday before turning lower. Earnings and revenue beat analyst expectations, spurred by strong sales in the pharmacy benefit management business. But the company’s full-year profit forecast fell short of estimates.
I expect the stock to bounce higher in the coming days, so I am recommending we roll our put to avoid being assigned shares and buy ourselves some more time for CVS to move higher.
Current Stock Price: $70.72
Cost Basis: $0.55
- Buy to close the CVS Feb Week Two (2/14) 73.50 Put for around $2.80
- Sell to open the CVS Feb Monthly (2/21) 73.50 Put for around $2.90
- Set initial credit limit at $0.10, but adjust as needed to roll today
New Cash in Hand: $0.65