Traders think Rite-Aid needs to rest after a blistering run in
the last 12 months.
optionMONSTER's trade scanners detected the sale of 30,000 April 5
calls for $0.85 and 30,000 April 5 puts for $0.60. Volume was more
than quadruple open interest at both strikes, indicating that new
positions were initiated.
The trader collected a credit of $1.45, which he or she will keep
as profit if the pharmacy stock closes at $5 on expiration next
spring. Gains erode on either side of that level, turning to losses
below $3.55 and over $6.45. (See our
section for more on the trade, known as a
RAD rose 0.58 percent to $5.21 yesterday and is up 375 percent in
the last year. Once struggling to survive, the company has been
improving its operations in recent quarters as same-store sales and
Shares are now back around the same level where they peaked in 2003
and 2007, which could make some chart watchers think that they're
due for a pause.
Total option volume was 7 times greater than average in the
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