First-Quarter Revenue Beat Revs Up Rite Aid Stock

The equity is up over 130% year-over-year

Digital Content Manager
Jun 25, 2020 at 3:37 PM
facebook X logo linkedin

The shares of Rite Aid Corporation (NYSE: RAD) are up a whopping 27.8% to trade at $16.46 this afternoon, soaring to a nearly two-month high, after the drugstore chain reported first-quarter losses of $0.04 per share, which were significantly slimmer than Wall Street's estimates. The firm's revenue also beat analysts' expectations. The company attributed the better-than-anticipated results to a spurt in sales of over-the-counter medicines, sanitizers, cleaning, and paper products during the COVID-19 pandemic.

There has been quite a bit of volatility surrounding RAD of late. The shares dropped to the $9 level in mid-March, only to grab an annual high of $19.92 a week later. While the equity has made several attempts to rally since, the $16.50 level has kept a lid on shares, though the 200-day moving average is providing a steady floor directly below. Nonetheless, RAD is up 132.6% year-over-year.

The options pits are exploding with activity today. So far, 64,000 calls and 21,000 puts have crossed the tape -- seven times the intraday average. The most popular position is the weekly 7/2 17-strike call, where positions are being opened. This suggests options traders are speculating on more upside for RAD in the coming weeks. 

Even with earnings volatility in play, options can still be had at a relative bargain. Rite Aid's Schaeffer's Volatility Index (SVI) of 119% sits higher than just 28% of readings from the last year, meaning options players are pricing in comparatively low volatility expectations right now.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI