Coventry Health Care (CVH) NewsBite - CVH Rises on Higher Medicare Payments

Posted on Tuesday, April 08, 2008 11:36 AM

Coventry Health Care (CVH) opened at $41.23. So far today the stock has hit a low of $40.98 and a high of $42.44. CVH is now trading at $42.25, up 1.18 (2.87%). After hitting a one-year high of $64.00 in August, the stock hit a one-year low of $37.50 last month. CVH shares are rising today with other healthcare stocks after the U.S. government said it will increase payments by 3.6 percent to insurers that participate in the Medicare Advantage program. Technical indicators for CVH are bearish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating. For a hedged play on this stock, consider a May bull-put spread below the $35 range. CVH hasn't been below 35 at all in the past year. The stock could lose up to 17.1% before this trade runs into trouble. [LHF- Seven Summits Strategic Investments NewsBite]