Someone out there is drawing the proverbial line in the sand when it comes to CVS Health (CVS) as the stock nears its 52 week low around $52 (current price $52.70 as I type this).
Today, over 14,000 of the June 50 puts were SOLD at prices between $.90-95. That follows on the heels of over 11,000 that were sold on Monday at similar levels. This should create by far the largest open interest contract in the near term for CVS at well over 30,000 contracts.
Hard to know for certain what is motivating the trade (other than CVS certainly appears oversold after dropping down from the mid $70’s zone last fall) and seems to have found a new current trading range between $51 to $57, and seller appears willing to buy the stock at $50 less premium received.
This is a very significant trade size for this name. The current market on these puts is $.70-75 as the stock has recovered a bit this morning along with the rest of the marketplace.