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.