Rite Aid Stock Suffers Post-Earnings Slide

Options traders are keeping with bearish sentiment

Laura McCandless

Deputy Editor

Apr 20, 2023 at 10:31 AM

Rite Aid Corp (NYSE:RAD) stock is down 9.3% to trade at $2.15 at last glance, after the company's wider-than-expected first-quarter losses of $1.24 per share. Meanwhile, the drugstore chain operator turned in better-than-expected revenue of $6.09 billion. On track for its third-straight loss, RAD is moving back toward its March 24 record low of $2.05. Year-to-date, the equity is down 35.4%.

Options traders are leaning bearish in their response, with overall options running at double the intraday average. So far, 844 calls and 2,057 puts have been exchanged, with the January 2024 3-strike put seeing the most activity.

This preference for puts is nothing new. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RAD's 50-day put/call volume ratio of 3.17 ranks higher than all other readings from the past year.

Analysts have yet to chime in after the event, but all three in coverage carry a "strong sell" rating. Meanwhile, short interest has been building, and currently represents 24.5% of Rite Aid stock's available float.

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