Walgreens (WAG) touched a new 52-week low this morning, but rallied midday and is now up $1.23 to $31.97 amid heavy trading in the options on the drug store chain. 47,000 calls and 13,000 puts traded on the stock so far, which is 3X the daily average. Dec 35 calls, which are 9.5 percent out-of-the-money and expiring in 23 days, are the most actives. 11,700 traded. Dec 33, Dec 34, Dec 36, Dec 37, Jan 34, and Jan 35 calls on Walgreens are actively traded as well. Meanwhile, implied volatility in options on the stock is up 15 percent to 37. A flurry of activity surfaced in WAG upside calls on talk the company has reached a settlement with Express Scripts. However, the speculation has not been confirmed by any of the major news services.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.