Defensive Healthcare Name Sees Bullish Trade into Pullback
Cardinal Health (CAH) with 1000 November $65 synthetic longs opening for $0.90 debit, modest pullback lately off highs and still in a positive trend. A synthetic trade just involves selling a put to buy a call at the strike price and is equal to long stock when done at the money. This is often best done in higher implied volatility markets like the current one since puts trade expensive. CAH is nearing its 55 EMA on this normal pullback and has room back to highs at 71 on a rebound.