RAD has spent most of the past 12 months in penny stock territory
Rite Aid Corp (NYSE:RAD) stock is down 5.6% to trade at $0.61 at last check, after the pharmacy concern filed for Chapter 11 bankruptcy protection this weekend, amid slowing sales, increasing debt, and opioid-related lawsuits. The company also named a new CEO and secured a debt restructuring deal.
The equity has spent most of the last 12 months deep into penny stock territory, after slipping below $5 back in December. The 50-day moving average has been acting as pressure since mid-August, contributing to Rite Aid stock's 80.6% year-to-date deficit.
Options traders are overwhelmingly bearish, per RAD's 10-day put/call volume ratio of 2.85 back at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 92nd percentile of annual readings. Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.01 stands in the 99th percentile of annual readings.