Quantcast

Trade of the Day: Express Scripts (ESRX)


Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

To receive further updates on this Express Scripts (NASDAQ: ESRX ) trade, sign up for a risk-free trial of  Maximum Options  today.

Express Scripts (NASDAQ: ESRX ), a pharmacy benefit management company operating in the United States and Canada, reported its latest earnings this past Wednesday, Aug. 1, and the stock moved sharply lower when the report crossed the tape.

However, the results weren't nearly as bad as the reaction in the stock, which fell about 10% after the release.

The company reported second-quarter 2018 adjusted earnings of $2.22 per share, which marked an improvement of more than 28% on a year-over-year basis, as well as revenues of $25.64 billion.

ESRX also announced that it expects full-year earnings of between $9 and $9.14 per share and revenues ranging from $99 billion to $102 billion.

Considering those results, I think the move to the downside was overdone and, furthermore, Cigna Corporation (NYSE: CI ) has now approached ESRX with a multi-billion dollar takeover offer. That should keep a solid floor under the stock, which is why I'm recommending a new bullish put-write on ESRX today.

Sell to open the ESRX Sept. 21st $60 put at about $1.00.

Note:  There are several September expirations available for ESRX options. Be sure you are opening the monthly options that expire on Friday, Sept. 21, 2018.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed - and join the conversation.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.

Compare Brokers

The post Trade of the Day: Express Scripts (ESRX) appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: ESRX , CI



More from InvestorPlace Media

Subscribe






InvestorPlace Media
Contributor:

InvestorPlace Media

Investing, Financial News










Research Brokers before you trade

Want to trade FX?