Rite Aid Takes Out Long-Term Trendline in Huge Rally

RAD shares have jumped above their 320-day moving average

by Josh Selway

Published on Dec 20, 2019 at 2:59 PM

Rite Aid Corporation (NYSE:RAD) has been on fire, on pace to roughly double in value this week thanks to the company's better-than-expected earnings and outlook from yesterday morning. RAD stock today is up 25.3% at $14.83, on pace to easily tackle the 320-day moving average for the first time since early 2017.

rad stock dec 20

RAD stock will now look to sustain this rally despite a 14-day Relative Strength Index (RSI) currently sitting at 82, a reading deep into overbought territory. What's interesting is that the stock has actually been less volatile than expected in the past year, based on its Schaeffer's Volatility Scorecard (SVS) of just 8.

As for options data, peak open interest is at the January 2020 1.50-strike and 2-strike calls. However, during yesterday's breakout, the April 8 put was most popular, and new positions were being opened. Today, calls are atop the leaderboard, with traders opening the weekly 12/27 14- and 15-strike calls.

 


A Schaeffer's exclusive

11 Stocks to Buy Before Leap Day

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.
Coronavirus Drags Wall Street Into The Red
The coronavirus outbreak is starting to impact company's earnings reports
Fitbit Stock Shocks Wall Street
FIT has surged 111% over the past six months
Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.