Walgreens Boots Alliance Could Extend Today's Slide

The stock's next ex-dividend date is tomorrow

Deputy Editor
Aug 17, 2022 at 3:18 PM
facebook twitter linkedin


Dow member Walgreens Boots Alliance Inc (NYSE:WBA) is looking to snap a five-day win streak ahead of tomorrow's ex-dividend date. The stock is down down 2.5% at $41.01 at last glance, after news that Walgreens, CVS (CVS), and Walmart (WMT) must pay a combined $650.6 million to two Ohio counties due to damage done by the opioid epidemic. This negative price action could continue, however, as the shares are running into technical trouble. 

More specifically, a study from Schaeffer's Senior Quantitative Analyst Rocky White shows that WBA is within one standard deviation of its 120-day moving average for the eighth time in the last three years. After the last seven signals, the equity was lower one month later 71% of the time, averaging a 7.6% loss for that period. A comparable move from the stock's current perch would put the stock back below $38 -- back toward its July 14 one-year low of $36.57. 

WBA August17

WBA ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 28 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners