Pharma News Drives Sector
Somewhat of a reversal of fortunes has befallen major healthcare middlemen this week, and for them it’s good news. The Trump administration is doing a 180° on proposed changes to drug rebates that would have cost the healthcare industry.
The development is causing healthcare stocks to rise here in the premarket, and a few that have caught our eye in particular, are UNH, CI, and CVS. Each of these plays is flying high in early trading, so what we’re going to look for is a classic dip-and-rip scenario. Profit-taking right out of the starting gate should drive these stocks down off of their lofty premarket highs, and that’s when where we come in with the following ideas.
CVS Health Corp. CVS Weekly $57-58.50 Calls
Cigna Corp. CI $167.50-175 Calls
United Health Corp. UNH $250-255 Calls
PCG, NAVB, TRNX, OMER, ATOS, HTGM, DPLO, KBLB