$CVS - setting up nicely for an explosive move.

Squeezing here.
1. IVP - 11%
2. IV - 29%

The breakout can be significant.

The options are a bit manipulated. So, build your position accordingly.

Buy the Volatility here. Spreads such as Back Ratio Spread, Buying Iron Condor / Iron Fly.

Below is an example.

For less experienced trader
BUY +1 IRON CONDOR CVS 100 (Weeklys) 11 SEP 20 65.5/69.5/65.5/61.5 CALL/PUT @2.50 LMT

For an experienced trader
BUY +1 1/1/-1 CUSTOM CVS 100 (Weeklys) 11 SEP 20/11 SEP 20/11 SEP 20 65/65/61 CALL/PUT/PUT @3.20 LMT

Both are done for a debit. Strictly close 1 week prior to expiration.

The risk is, This stock can squeeze for a month. However I feel like this will explode in 2 weeks.

ความคิดเห็น:

Be ready to roll the trade next week. Rolling each leg at optimal time.

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Profitable on both examples. I am not going to carry this to next week. Low probability to make any money next week.


Good Luck.