ACTIONS:

Take profits and sell to close the remaining third of the RAD July 8 calls at current levels.

$0.60 Stop Limit triggered on the remaining third of the RAD October 9 calls.

Dear Momentum Options Subscriber,

Rite Aid (RAD) beat earnings estimates by a penny but missed on sales. As a result, we are exiting both of our trades on today’s pullback.

 

Rite Aid (RAD, $8.64, down $0.28)

RAD July 8 calls (RAD150717C00008000, $0.70, down $0.35)

Entry Price: $0.65 (6/9/2015)

Exit Target: $1.30 (closed 1/3 @ $1.00 on 6/11/15, closed 1/3 @ $1.00 on 6/16/15)

Return: 38%

Stop Target: $0.80 (Stop Limit)

 

RAD October 9 calls (RAD151016C00009000, $0.60, down $0.25)

Entry Price: $0.55 (6/9/2015)

Exit Target: $1.10 (closed 1/3 @ $0.80 on 6/11/15, closed 1/3 @ $0.80 on 6/16/15)

Return: 33%

Stop Target: $0.60 (Stop Limit)

The Stop Limit of $0.80 on the RAD July 8 calls hasn’t triggered, as they have only traded to a high of $0.75. However, I still want to close the trade this morning. Take profits and sell to close the remaining third of the RAD July 8 calls at current levels.

The Stop Limit of $0.60 on the remaining third of the RAD October 9 calls has triggered, and we are now out of the position. The October calls have traded in a range of $0.55-$0.65 today.

 

All prices given in this update are current as 10:15 a.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options