Walgreens Stock Moves Higher Following Upbeat Q4 Report

The blue chip is down nearly 40% in 2020

Deputy Editor
Oct 15, 2020 at 10:48 AM
facebook twitter linkedin

The shares of Walgreens Boots Alliance Inc (NASDAQ: WBA) are up 5.5% to trade at $37.89 this morning, after the company reported fiscal fourth-quarter earnings and revenue  that beat analysts' expectations. Additionally, the blue chip announced a 2.2% dividend increase.

The past three months have been especially brutal for the equity. In that time, it's down 11.7%, and hasn't managed a close above $37.50 since late August. To put it in perspective, the last time WBA consistently traded below that level was at the end of 2012. Additionally, the last three months have seen consistent pressure in the form of the stock's 60-day moving average. Longer term, Walgreens stock has shed 39.1% in 2020.  

Switching gears, today's options pits are seeing activity on both sides of the tape. In just the first hour of trading, over 12,000 calls and 9,123 puts have exchanged hands -- seven times the intraday average and option volume pacing in the highest percentile of its annual range. The October 38 put is the most popular, followed up by the 40-strike call from the same series. 

Additionally, short interest is up 5.4% in the past reporting period, and now accounts for roughly 20.01 million shares, or 2.2% of the stock's total available float. Options traders are pricing in relatively low volatility expectations at the moment, too, per the stock's Schaeffer's Volatility Index (SVI) of 44%, which sits higher than just 27% of all other annual readings.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1