Bulls Rally Around Walgreen Company (WAG) Ahead of Earnings

Walgreen Company is scheduled to unveil its fiscal 1Q earnings report tomorrow morning

Dec 22, 2014 at 3:10 PM
facebook X logo linkedin


Walgreen Company (NYSE:WAG) is slated to take its turn in the earnings confessional ahead of tomorrow's open, with Wall Street calling for a fiscal first-quarter profit of 75 cents for the drugstore chain. Over the past four quarters, the stock has averaged a single-session post-earnings gain of 1.2%, which may be why options traders have shown a slight bullish bias in the months leading up to tomorrow's scheduled event.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WAG's 50-day call/put volume ratio of 1.95 ranks in the 60th percentile of its annual range. Echoing this call-skewed bias is WAG's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.22, which indicates that near-the-money call open interest outweighs put open interest by a roughly 5-to-1 ratio among options slated to expire in three months or less.

This upbeat stance toward WAG is witnessed elsewhere on the Street, as well. Short interest, for example, accounts for a low 1.2% of the stock's available float, and would take less than three sessions to cover, at average daily trading levels. Plus, 60% of covering analysts maintain a "buy" or better rating toward the equity, with not a single "sell" to be found.

On the charts, Walgreen Company (NYSE:WAG) has tacked on an impressive 28.6% year-to-date. More recently, the stock shot through previous resistance in the $69-to-$70 region earlier this month on news of a CEO switch, and was last seen lingering near $73.86.

Daily Chart of WAG Since January 2014
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI