The shares of CVS Health Corporation (NYSE: CVS) have fallen from their recent four-year high of $ 90.61 on May 24, to which the stock climbed after three consecutive months of gains. Up 1.6% to trade at $ 85.98 on the last review, CVS is showing a historic bullish signal on the charts"Text alignment: center;">
More specifically, the stock was only within one standard deviation of its 40-day ascendingmoving averageafter spending several months on it. According to Schaeffer’s senior quantitative analyst Rocky White, six similar signals have occurred in the past three years. CVS Health stock returned positive returns 67% of those times a month later, an average increase of 5%. From today’s perspective, a similar move would bring CVS above the $ 90 mark and close to its four-year high mentioned above.
Puts were also more popular than usual, which has left a lot of pessimism in the option pits being settled. This corresponds to CVS’s 10-day put / call volume ratio on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which is in the 97th percentile of their annual range.
CVS also currently has attractive rewards. The security’s Schaeffer’s Volatility Index (SVI) of 19% is only in the 2nd percentile of its annual range, suggesting that option players are currently pricing in low volatility expectations.