Put Options on WBA on 7/2/2018

Bearish Flag on $WBAWalgreens Boots Alliance, Inc. (WBA) operates as a pharmacy-led health and wellbeing company.

It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale.

The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services and mail services; and manages in-store clinics.

As of August 31, 2017, this segment operated 8,100 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacies, as well as approximately 400 in-store clinic locations.

The Retail Pharmacy International segment sells prescription drugs; and health, beauty, toiletry, and other consumer products through its pharmacy-led health and beauty stores and optical practices, as well as through boots.com and an integrated mobile application. This segment operated 4,722 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 637 optical practices, including 178 on a franchise basis.

The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers. This segment operates in France, the United Kingdom, Germany, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, the Czech Republic, and Lithuania. 

Shares have formed a bearish "flag" following its recent quarterly report and after Amazon purchased PillPack, a sign that the internet giant is getting ready to enter the pharmacy business. Lower share prices are expected for this stock.

 

We will be trading July 20th Put options

 

Last trade: $60.01

52-Weeks Trading Range: $59.07 to $83.89

Trade

  • Buy 1 July $60.00 Put at $1.35
  • For a net debit of $1.35

Profit/Loss Analysis

  • Breakeven at $58.65
  • Maximum profit is unbounded
  • Maximum loss is ($135.00) at strike of $60.00

Closing Summary

  • Sold 1 July $60.00 Put at $0.00

Position closed on 7/20/2018 at price of $0.00 with a -100.00% loss in 18 days.

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