Unpacking the Latest Options Trading Trends in CVS Health

Investors with a lot of money to spend have taken a bullish stance on CVS Health CVS.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CVS, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 8 uncommon options trades for CVS Health.

This isn't normal.

The overall sentiment of these big-money traders is split between 62% bullish and 37%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $303,288, and 2 are calls, for a total amount of $93,600.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $70.0 to $80.0 for CVS Health over the recent three months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for CVS Health's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across CVS Health's significant trades, within a strike price range of $70.0 to $80.0, over the past month.

CVS Health Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

About CVS Health

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

In light of the recent options history for CVS Health, it's now appropriate to focus on the company itself. We aim to explore its current performance.

CVS Health's Current Market Status

• Currently trading with a volume of 3,068,187, the CVS's price is up by 0.61%, now at $75.65.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 62 days.

What Analysts Are Saying About CVS Health

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $86.33333333333333.

• An analyst from RBC Capital has decided to maintain their Outperform rating on CVS Health, which currently sits at a price target of $84.
• An analyst from Leerink Partners has revised its rating downward to Outperform, adjusting the price target to $88.
• An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $87.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for CVS Health with Benzinga Pro for real-time alerts.