Options action is picking up in Walgreen (WAG), as shares snap a seven-day 4.7 percent losing skid and trade up 84 cents to $33.53. The company reported a worse-than-expected 4.6 percent decline in February same store sales Monday morning. Still, shares brushed off the early weakness and are trading higher, with 7,200 calls and 19,000 puts traded on the retailer so far. The top trade is a Mar – Apr 33 call spread, apparently bought for 77 cents, 1210X on CBOE. It possibly rolls a position out, as 33 calls are now 54 cents in-the-money. Meanwhile, April 28, April 32, and Mar 32 puts are the most actives in WAG and levels of implied volatility have moved up 3 percent to 30. Walgreen will report earnings on the morning of Mar 27.
About the Author (Author Profile)
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.