This week we'll focus on CVS Health Corporation (CVS  ), which has been in the news quite a bit since releasing earnings just two weeks ago. The company reported earnings that were less than stellar thanks to increasing costs and a struggling long-term care business. For traders this means more volatility - which could mean more trade opportunity.

If you look at the price of the stock since reporting earnings, shares have fallen every single day for a total of 12 consecutive days. Nearly every one of those days also saw the stock push to new lows. Since the gap lower on earnings the stock has fallen an additional 20%, many will be looking for a short term bounce or pause in decline.

A move to the $50 area would put it down over 20% (not including the earnings gap) and a quick check of the options market shows that investors are currently pricing in a 28% chance that it falls lower than that over the next month. With this in mind, we'll use a simple option trade to participate in those odds.

Looking at April's monthly expiration, we'll focus on the $50 put, which is currently selling for about $1.20. If we sold that put for $1.20 it puts our breakeven at $48.80 which should be more than enough wiggle room for this weak stock to move around. Our goal would be to profit around $0.60 on the trade in total which means we would like a rapid bounce off this area or for the stock to trade sloppily in a range until closer to expiration.