One trader tries for a 575% profit in a month’s time

Here's a trade on CVS that could get me big rewards: Trader
Is a financial turnaround coming?
Stocks will get volatile—no matter what the Fed does: Strategist

One trader is betting on an embattled health-care name to reap him huge rewards should his high-risk trade pay off.

Todd Gordon of TradingAnalysis.com is wagering against CVS Health, which has underperformed in 2016 even within the poorly performing consumer staples sector.

"[The staples] have come under pressure as U.S. Treasury prices have been declining from a combination of expected Fed rate increases as well as foreign central banks selling our Treasurys," he said Wednesday on CNBC's "Trading Nation."

Many staples stocks have high dividend yields, meaning they are in trouble if bond yields rise, as they become less attractive by comparison. It's worth noting, however, that CVS doesn't have a particularly high yield.

On a chart of CVS, Gordon sees the stock breaking below what he deems a support line stretching from a "flash crash" that happened last September.

Gordon wants to buy the November 85-strike puts and sell the November 80-strike puts for 74 cents, or $74 per options contract. The $74 premium is the most Gordon can lose on the trade.

If CVS does close at or below $80 on November expiration, however, Gordon will make a $426 reward, for a 575 percent profit.

To be sure, Gordon's trade is quite the gamble. CVS would have to drop about 10 percent by November expiration for him to reap the rewards.

"This is a far-out-of-the-money put debit spread," said Gordon. "[It has a] huge reward-to-risk ratio, [but] the probability of success is lower because we are taking a little bit of a punt here on this trade."