Looks like some material facts leaked out to one smart options trader today on Walgreen Company (WAG). The first trade came in just after 10am as WAG was trading down at lows of the day, buying 8500 August $85 calls for 34 cents each. That trade on it’s own was impressive. But even after WAG rebounded some, the buyer came back for more.
The next trade was a buy of 10,000 of the AUG $85 calls at 50 cents. There were additional trades, with a total buy of over 25,000 of the Aug $85 calls, with 93 % of the trades happening at the ask.
Meanwhile, Walgreen Company (WAG) is currently trading at $73.24, down 49 cents on the day, but up about $1.50 from todays low.
This is big bet, bought on weakness. We have to assume this is some sort of leak of material info on Walgreen, and/or possibly a big analyst upgrade is about to be announced, with a sizeable price target increase. While insider trading is illegal, it is clearly alive an well. But at least you can participate it in by doing a copycat trade on the August $85 WAG calls, especially since it’s now off it’s high of the day.
Walgreen (WAG) announced their q3 earnings earlier today, announcing they missed their earnings estimate, despite higher sales in the quarter