Decoding CVS Health's Options Activity: What's the Big Picture?

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 10 uncommon options trades for CVS Health.

This isn't normal.

The overall sentiment of these big-money traders is split between 60% bullish and 40%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $120,570, and 8 are calls, for a total amount of $379,036.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $60.0 and $72.5 for CVS Health, spanning the last three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of CVS Health stands at 1892.0, with a total volume reaching 6,893.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in CVS Health, situated within the strike price corridor from $60.0 to $72.5, throughout the last 30 days.

CVS Health 30-Day Option Volume & Interest Snapshot

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 us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 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.

Present Market Standing of CVS Health

• With a volume of 4,136,247, the price of CVS is up 0.17% at $58.9.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 71 days.

What Analysts Are Saying About CVS Health

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $61.6.

• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $58.
• An analyst from Cantor Fitzgerald has decided to maintain their Neutral rating on CVS Health, which currently sits at a price target of $62.
• Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for CVS Health, targeting a price of $62.
• An analyst from Deutsche Bank persists with their Hold rating on CVS Health, maintaining a target price of $63.
• Consistent in their evaluation, an analyst from Barclays keeps a Equal-Weight rating on CVS Health with a target price of $63.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest CVS Health options trades with real-time alerts from Benzinga Pro.