DavideG
Short

CVS - Retesting Several Points of Resistance

NYSE:CVS   CVS HEALTH CORP
86 2 2
Using a similar trade setup from an October post, which resulted in gains of 155% within 10 days. Since returning to it's 52 week low in min-November, CVS             has rallied back into the ~$100 area. Its current rally has lasted 21 trading sessions, nearly identical to the length of the 20-day October rebound.

It now faces several significant points of resistance: 1) back testing the channel that it previously broke down out of in mid-November, 2) the $100 previous gap and psychological level, 3) the descending trend line formed by the previous two peaks, 4) the RSI backtesting the longstanding trend line , and 5) the RSI having returned to the level (53) where CVS             previously peaked in late-Oct. General market also appears heavy - the S&P 500             is down 0.75% today, following a retest of its 200 day MA.

Bought some Feb '16 $95 puts @ $2.05/contract. CVS             shares were last trading at $98.51. First target is between $94 & 95.5. Allowing a maximum of 20 trading days for this trade, with a stop loss just above $100.

12/28/2015 - 11:21am EST
Further downside seems to be in store, but anticipate CVS will find some short term support at $94. Will be watching for the next trade.
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Target hit this morning. Exited @ $3.40/contract (CVS last trading at $94.67), resulting in a profit of 65% within 9 days. 1/7/16 - 9:47am EST
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