Big trade sees Rite Aid holding firm
A large trade is betting that shares of Rite Aid will hold firm through next spring.
optionMONSTER systems show that a print of 8,000 April 5 puts was sold for the bid price of $0.65 yesterday. This is clearly a new position, as the volume was about twice the previous open interest in the strike.
The put seller is looking for RAD to stay above $5 through expiration in mid-April. If the stock falls below that strike price, the trader faces the risk of having to buy shares at that level. (See our Education section)
RAD was down another 2.22 percent to $4.84, its lowest level in almost a year. Shares climbed to 52-week highs above $8 in early June.
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