Options traders positioning for shares in the drug retailer to extend gains this week appear to have purchased September expiry calls on the stock this morning. The Sep $54 and $54.5 strike calls each traded upwards of 1,000 times in the early going versus open interest of 745 and 150 contracts each, respectively. Time and sales data suggests around 600 of the $54 strike calls were purchased for an average premium of $0.73 each, while roughly 900 of the $54.5 strike calls traded to the middle of the market. Finally, around 900 of the Sep $55 calls have changed hands today, fewer than the 1,081 contracts in open interest at that strike. Traders appear to have purchased around 350 of the $55 strike calls at an average premium of $0.55 per contract. Buyers of the $55 calls may profit at expiration this week if shares in WAG top the average breakeven price of $55.55.
This article will become free after 48 hours (see below for free content). To read the rest of this article now, along with Phil's live intra-day comments, live trading ideas, Phil's market calls, additional member comments, and other members-only features - Subscribe to Phil's Stock World by clicking here.
