• Chart of the Day: Walgreen Co. (WAG)

    by  • March 13, 2013 11:20 am • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Walgreen Co. (WAG) which operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online.

    Chart of the Day: Walgreen Co. (WAG)

    Ticker:  Walgreen Co. (WAG)

    What I Am Looking At:

    • Strong outperformance on a year-over-date basis, +28 percent, and up nearly 16 percent year-to-date
    • Critical round number $40 level (significance going back to 2000) has successfully been passed
    • Long-term target is the next round number level at $50, which could act as a magnet
    • Breakout of ascending triangle on the heels of an upgrade and target raise this morning
    • Put open interest is more than double the call open interest for the front three months, which ranks in the 100th percentile of all readings taken over the past year, showing an extreme in pessimism among uptrending price movement
    • 10-day buy-to-open put/call ratio stands at 4.07 indicating that option players are buying 4 times as many puts than calls
    • Room for further upgrades as 8 out of 16 analysts rate the shares a “hold” or worse

    Strategy:  Buy on current breakout or wait for a possible backtest of $42, targeting round number level $50



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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