Rite Aid Corporation (RAD) Bulls Bet On a Post-Earnings Breakout

Rite Aid Corporation has a history of post-earnings swoons

Dec 17, 2014 at 1:18 PM
facebook X logo linkedin

Rite Aid Corporation (NYSE:RAD) is scheduled to unveil its fiscal third-quarter earnings report bright and early tomorrow morning. Over the past four quarters, the stock has averaged a single-session post-earnings loss of 6% -- including an 18.5% plunge in September. In spite of this, calls are trading at four times the average intraday rate today, with a number of option bulls betting on RAD to buck this historical trend.

Most active in RAD's options pits is the December 6 call, where 4,086 contracts have changed hands. Drilling down, it appears a number of these positions are being bought to open, as traders roll the dice on the stock to be perched above $6 at week's end, when the front-month options expire.

On the charts, Rite Aid Corporation (NYSE:RAD) -- unlike sector peer CVS Health Corp (NYSE:CVS) -- has struggled since hitting a 12-year high of $8.61 in early June, with the shares off more than 30% to trade at $5.99. What's more, the $6 level, which coincides with RAD's 320-day moving average, as well as peak call open interest in the December series, has put a quick halt to today's rally attempt.

Daily Chart of RAD Since June 2014 With 320-Day Moving Average

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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI