CVS is down $2.15 to $46.30 in active trading of more than 8 million shares after rival Walgreens ended a long dispute and announced a new pharmacy network agreement with Express Scripts. Walgreens was losing customers to CVS during its impasse with Express Scripts. So CVS is down on the news, but options order flow is bullish, as 14,000 calls and 4,200 puts traded on the stock so far today. The top trade is a 3,450-lot of Aug 47 calls for $1 per contract on the International Securities Exchange, which was bought to open for a customer account, according to ISEE data. 8,755 Aug 47 calls now traded in CVS. Aug 48 and 49 calls are the next most actives and 30-day ATM implied volatility jumped 19.5 percent to 24. CVS will report earnings the morning of Aug 7.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.