The Golden Lounge

[Theo]

RAD: Bulls keep shopping at Rite Aid

Who am I to argue? What the hay, I'm in for 10 contracts Nov 20 $7 CALLs @ .15 for laughs and giggles...

The bulls continue to shop at Rite Aid as the pharmacy stock tries to rebound from a major selloff.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 27,000 November 7 calls for $0.15 to $0.20. It follows buying in the same contracts on Tuesday for $0.10 to $0.15.
Long calls lock in the price where investors can own a stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis. (See our Education section)

RAD is up 0.24 percent to $6.32 in afternoon trading. It peaked abover $9 in August, only to pull back on a combination of poor results and profit-taking in the broader health-care sector. But it's now trying to hold support around the same level where it sat immediately before gapping higher on strong earnings in December.

Total option volume in the name is almost quadruple average amounts so far today, with calls outnumbering puts by a bullish 20-to-1 ratio.