This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Charge Into Walgreen

By Mike Yamamoto of OptionMonster

NEW YORK -- Walgreen (WAG) reached new all-time highs Tuesday, and the bulls were looking for even more gains.

OptionMonster's tracking systems detected heavy buying in the March 65 calls, with premiums more than tripling from 55 cents to $1.68 as the session unfolded. More than 12,000 changed hands against previous open interest of just 127 contracts, with more than two-thirds of the total trading in a single block of 8,288 that was purchased for the ask price of 82 cents.

These calls lock in the price where shares can be purchased through mid-March at a fraction of the cost of the stock itself. The contracts can provide substantial leverage in profiting from a move higher while limiting the amount of capital at risk.

Walgreen shares surged 5.85% to finish Tuesday at $64.20 after peaking at $64.71 just minutes before the close. The drugstore chain fell for most of January but bounced off support around $56 early this month, erasing the earlier losses as monthly same-store sales beat forecasts last Thursday. The stock is also up more than 10% since being recommended during our proprietary Market Action webinar on Feb. 5.

Overall option volume was eight times greater than average, with calls accounting for a bullish 63% of the total.

Yamamoto has no positions in WAG.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports