📢 3/19/25 Take Profit Alert: CVS Bull Put Spread
Lock in 77% Gains Before Resistance Hits
Trade Management Plan
Since this is a bull put spread, it benefits from CVS staying above $63 by expiration.
1. Profit Target Reached (77%)
The position is up 77% of max profit and nearing full profit.
The best practice is to close credit spreads when they reach 50-70% of the max gain to reduce risk.
Current Net Liquidation Value: -$236 means most of the credit has been realized.
CVS could experience a pullback near resistance at $68.51.
2. Manage Based on Trend & Volatility
Bullish Trend → Support at $62.51 remains strong.
IV Rank is 63 → Elevated volatility means option premiums are still rich.
Earnings on May 1 → No immediate concern, but any volatility could affect pricing.
3. Actionable Decision
✅ Recommended Action: Close the spread to secure profits (~77% max gain).
With only 16 days to expiration, risk-reward no longer favors holding.
CVS is near resistance ($68.51), and an overbought RSI suggests a potential short-term pullback.
Profit: +77% of max gain
Dollar Amount: +$796.00
Final Decision:
💰 I’m going to CLOSE the spread to lock in profits (~77% of max gain).
This follows optimal spread management principles and avoids unnecessary risk.
*Disclaimer The examples in The Options Oracle are my opinion, not financial advice.
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