Buy CVS Apr17 85 Puts @ $4 ~ Swing short in Downtrend

CVS is in a healthy downtrend and broke through the 200sma with strength. The RSI peaked with the prices retraced. Prices are now retracing with 34EMA and 200sma resistance. In addition, the 2nd leg of the retracement will be found @ 85.7. Multiple areas of resistance confluence.
Target a move to $80.50 for first profit stop and move to breakeven.

Trade active:

Prices spiked up today and we were able to get our entry @ $4.00. Currently targeting $80.50 as Profit Stop and potential $6.00 exit with Delta @ 0.55.

Watch for 2nd entry if prices continue up to the $88 area. We will enter a pressing validity option trade. However, I am planning on the 200sma providing resistance.

Trade active:

CVS has dropped nicely from the 34EMAL and 200sma resistance. We are looking at a first profit target @ the $81.20 area. Based on the option price reaction to volatility, delta and remaining room to target, target $5.45/$5.50 as profit target.

We will then watch the reaction to prices as they break toward $78.50 and the Keltner Extreme Lows at $74.80.

Good Hunting!

Comment:

Profits taken on the first move @ $5.50. I am watching prices extend through the Daily Keltner extreme and $8.25 prices. Currently trailing stop at $5.50 and waiting for prices to reach the weekly Keltner extreme @ $74.

Trade closed: target reached:

Completed trade today on another move down. Prices hit the lower Keltner extreme on the weekly chart. Final contract sold for $10.50. I would like to build my size to have at 3 contracts so I could allow the final contract to run. However, I am comfortable with this trade and the management. We will continue to look for similar to trades to take in the future.
Good Hunting!