Walgreens Boots Alliance, Inc. (WBA) is the Deerfield, Illinois based parent holding company that owns and operates a global chain of drugstores/pharmacies under the Walgreens and Boots corporate names. At the time of this post (11:00AM CST), WBA is currently trading at 79.30, up 3.40% on the day. The stock continues to press new 52 week highs, and it traded as high as 79.79 earlier in today’s session after continuing its impressive rally off of the lows printed in early August at 57.75.
Earlier this morning at approximately 9:49AM CST, OptionHacker detected and flagged some unusually bullish options activity in WBA just as the stock broke through 78.50 and surged to fresh 52 week highs intraday. A large buyer stepped in at this time and purchased a block of 10,000 of the March ’15 80.0 strike calls for 1.25, paying over the listed ask price at the time of 1.21. Going off against an open interest in the strike of just 866 contracts, we can confidently surmise that this was an opening transaction, and that the trader was urgently looking to establish this bullish position as they were willing to pay up in order to gain immediate entry into these long contracts. With an initial cash outlay of approximately $1,250,000 before commissions, this sizable bet has already paid off for this trader as the options have traded as high as 1.80 on the day, and are currently sitting around 1.60 as WBA remains in its strong intraday uptrend. With just over 37 days until the March monthly option expiration and a significant profit cushion already established, this trader will likely be holding a significant portion of the position and looking for continued upside in WBA as we move forward into the coming month.
Trade: A trader bought 10,000 WBA Mar 80 calls for $1.25
Risk: $125 per 1 lot
Reward: Unlimited
Breakeven: $81.25
Over 12,000 contracts have traded on this line in total and these calls have already traded as high as $1.80 on the day making this an extremely profitable trade.
Regards
Andrew Keene
KeeneOnTheMarket.com
