Benzinga's Option Alerts Identify One Trader's Bullish Bet On Rite Aid

Rite Aid Corporation (NYSE: RAD) shares spiked up 2.36 percent Wednesday amid notable call activity. In weekly calls expiring late February, a trader bet on 20 percent upside by the end of the week.

The activity might be inspired by Rite Aid’s anticipated buyout. The company is still awaiting the Federal Trade Commission’s decision on the Walgreens Boots Alliance Inc (NASDAQ: WBA) merger, which was last updated January 31 as the parties put forth a revised agreement.

On Tuesday, Sidoti & Company confirmed the divestment of 865 Rite Aid stores to Fred’s, Inc. (NASDAQ: FRED), which suggests progress in the overall deal.

Not everyone shares Sidoti’s optimism, though. Last week, one trader bet on 5 percent downside on Rite Aid, which was trading at $5.30 at the time.

Rite Aid shares closed up 0.85 percent at $5.33; the stock hit an intra-day high of $5.45.

Image: Mike Mozart, Flickr