Put Traders Pounce on Walgreens Stock After Quarterly Report

However, the company beat first-quarter expectations

Deputy Editor
Jan 5, 2023 at 10:22 AM
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Walgreens Boots Alliance Inc (NASDAQ:WBA) is kicking off earnings for the Dow components, and bearish options traders have been quick to respond. Within the first half an hour of today's session, more than 19,000 puts have crossed the tape -- 14 times the intraday average volume and more than the 13,000 calls traded so far. The most action is taking place at the weekly 1/6 37-strike put. 

Walgreens posted better-than-expected earnings and revenue for the first quarter. The pharmaceutical giant's results were boosted by an early flu season, which increased demand for cough and cold medicine. In addition, the company raised its full-year revenue outlook, citing it's U.S. health-care segment's recent acquisition of Summit Health.

However, despite the strong sales, the drugstore chain's unadjusted report posted a loss of $4.31 per share, driven by a $6.5 billion opioid litigation charge, which is weighing on the shares. WBA was last seen down 6.8% to trade at $34.95 -- its lowest mark since late October.

Today's dip put Walgreens stock back below its 100-day moving average, which kept losses over the last three sessions in check. In addition, WBA is pacing for its sixth-straight weekly loss, and stands more than 35% lower year-over-year.

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