Bullish – WBA $55.19 – Consumer Staples
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Walgreens. Walgreens has underperformed the Dow over the past 6 months but has reached an oversold level. Coupled with a 50% retracement back to a support level, suggests a possible bounce higher. Expecting WBA to trade higher, Michael Khouw suggests buying an Oct 52.5/57.5/65 Call Risk Reversal for $0.00 Even. As of Friday’s close, these options were trading at a $0.25 Credit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: WBA OptionsAction Trade
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