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CVS Corp (CVS) — wheel strategy suitability
Where CVS sits as an underlying for selling cash-secured puts and covered calls, and what its own price history says about the risk of being assigned into a falling stock. Snapshot of 3 October 2026.
CVS Corp (CVS) scores 73 on the Wheel score, which puts it in the preferred band for selling cash-secured puts and covered calls.
The score is carried by its margin stability (96/100) and held back by quality (35/100). Steady margins are exactly what you want under a short put: the earnings behind the stock do not swing much from quarter to quarter. The quality leg is the weak one, so read the balance sheet before you accept assignment rather than after.
It has weekly options, so no liquidity haircut is applied — weeklies let you roll on a shorter cycle and take theta more often.
Earnings are roughly 25 days out — fine for a short-dated contract that expires first, tight for a monthly.
Over the last 3.0 years it had 2 days with a fall of 10% or more (0.67 a year), a deepest drawdown of -44.0%, and a worst single session of -16.8%. That is in line with the median screened name (0.67 gap-downs a year, -44.9% typical worst drawdown).
Realised volatility runs about 33% annualised. That sits in the range where premium is worth collecting without the stock being wild.
There is no uptrend in the price right now, so assignment would leave you holding something that is not going up.
Score breakdown
| Wheel score | 73 | 0–100 suitability for options selling |
|---|---|---|
| Quality | 35 | ROIC, margins, leverage, accruals |
| Valuation | 71 | cheaper on fwd P/E, EV/EBITDA, FCF yield |
| Margin stability | 96 | steadier earnings score higher |
| Options listed | Weekly | weekly avoids the liquidity haircut |
| Accounting flags | 0 | −8 points each |
Realised tail risk
Computed from our own daily price history, 2023-10-04 to 2026-10-01 (749 sessions). The Wheel score is built from fundamentals, so these price-derived numbers are an independent check on it, not a restatement of it.
| Days falling 10%+ in one session | 2 | 0.67 a year |
|---|---|---|
| Deepest drawdown | -44.0% | peak to trough |
| Worst single session | -16.8% | |
| Realised volatility | 33% | annualised |
Fundamentals
| Revenue (ttm) | 402,067M USD |
|---|---|
| Revenue CAGR (3y) | 7.6% |
| Net margin | 0.4% |
| Return on equity | 2.4% |
| Share price | $85.20 |
| Days to earnings | 25 |
| Sector / industry | Healthcare · Healthcare Plans |
Open the CVS options chain on Yahoo Finance to check live strikes and premium — this page deliberately carries no quotes, because a quote baked into a static page is stale before you read it.
Run the numbers on CVS
Pre-filled with the snapshot price of $85.20 and 30-day realised volatility; add the strike and premium from the live option chain.