Q2 STOCKS TO BUY

Rite Aid Corporation (RAD) Bears Jump Aboard After Same-Store Sales Miss

Rite Aid Corporation (NYSE:RAD) puts are accelerated after May same-store sales disappointed

Jun 4, 2015 at 3:17 PM
facebook X logo linkedin


Coming into today, call buying had been the strategy of choice for Rite Aid Corporation's (NYSE:RAD) option traders. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than 20 calls have been bought to open for each put during the past 10 sessions. What's more, the resulting call/put volume ratio of 20.08 is only 10 percentage points from an annual peak.

Also telling is RAD's Schaeffer's put/call open interest ratio (SOIR). This reading of 0.17 sits at an annual low, meaning short-term traders are more call-skewed now than at any other point in the past year.

It's a different scene entirely today, as puts are crossing at five times the expected afternoon rate. The most popular contract is the weekly 6/5 8.50-strike put. Data gives the impression of buy-to-open activity, meaning traders are betting on extended losses below $8.50 before the options expire at tomorrow's close.

This bearish action comes as the shares are down 3.6% at $8.35, after the company reported same-store sales for May that missed expectations. Still, Rite Aid Corporation (NYSE:RAD) has been strong in recent months. Since touching a 2015 low of $6.68 on Feb. 2, RAD has added 25%, and hit a 13-year high of $9.07 on April 2.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter