WBA - Earnings play for Walgreens on 01/06/2022 and dividend puts swing for 02/17/2022

[Ridn2lo]

Walgreens Boots (WBA) is a holding company that operates three difference segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. They operate the chain of Walgreens stores and pharmacies as well as distributing multiple different products under their brand.

On Thursday 01/06/2022, WBA will be reporting their Q1 earnings before market open.

For past earnings, WBA appears to have a $5 range of movement in the positive or negative from whatever it’s price is going into earnings. It is currently trading slightly above $52. It’s 52 week high is $57.05 which was set in 04/2021. It’s 52 week low is around $39.

WBA is currently trading around the same price it was at before the Covid crash in 03/2020, and from the charts it appears to have kinda traded mostly sideways from that time until now so it was not one that seems to have benefited much from the Covid pump over 2021.

I will probably be picking up some calls ATM and maybe one OTM around the $56 strike. If it maintains it’s current price going into earnings, then the $5 movement up would have it bouncing off it’s 52 week high price.

But then about a month after earnings, WBA has a dividend expiration date. And what does WBA like to do on that date? It likes to go down. So on that note, regardless if the share price goes up or down I will probably be playing puts on this sometime in February since that would correlate with the expiration date.

From my research, they like to have dividends paid out in March, June, September, and December so this makes February, May, August, and November a great time for a put play. Looking at the daily chart on dividend dates, it almost looks like guaranteed free money.

This is not financial advice. Please do your own research.

[internetkings]

This is an interesting one - the local ones near me I see lines out into the street for the pharmacy but also they close early due to staffing shortages weekly. They seem to have plenty of products when they are open. Grabbed some lotto Calls & Puts

[khalidad]

I just looked the expected move on the weekly options for today and currently pricing in a move of about 4.24% (+/- 2.253). Currently, at least you’re not paying extra if you want that OTM 56 strike call. Also checked IV on the underlying and it is continuing to pull back which suggests a steady slow movement for the week.

Cross checking CVSes chart, looks similar over the last 30 days so that could be a quick arbitrage play if earnings are good for WBA. Final thought - Rite Aids earnings were better than expected, so its possible WBA on a surprise could finally break out of that $57 range and start challenging some of the prior levels on the monthly chart.

[internetkings]

Had $58 calls was able to sell them for 50% profit now just gotta sell off the puts

[Houston]

Picked up 5 calls and 1 put with some profits I made earlier today. Godspeed.

[Houston]

Good call and DD.

[Ridn2lo]

Congrats to anyone who played this and made out okay. I was able to get out of my few calls at market open for a decent profit, but not anywhere near what I was expecting. This like other earnings was a great play the week before, but unlike the others last quarter it is now questionable afterwards. WBA may have shown today that with the current state of the market, it may just be a bad time for earnings plays. For instance AEHR earnings were positive, but the stock price really didn’t seem to pop in AH off the news.

Keep this on your radar over the next month. Puts should print with the upcoming dividend date. And given the market, they could end up printing a lot harder.

[Ridn2lo]

So upon further research I have some more definitive dates locked down for the WBA dividend puts play. The declaration date for WBA dividend will be 01/27/2022. The ex-date for the dividend should fall on 02/17/2022 for a payout on 03/11/2022.

So for this play you’d want to be looking to take a put position either the day before (or day of) that ex-date on 02/17, and ride that puppy down for the next 2 to 3 days.

[Ridn2lo]

Here is the chart from WBA’s last four dividend ex-dates. You can clearly see there is a normal pattern of it falling nicely after those dates. It is typically followed by a quick recovery so this could be a nice puts play, and then immediately jump into some calls.

[Ridn2lo]

So Thursday 02/17 is the dividend ex-date for Walgreens (WBA). Will probably be looking at grabbing a few 03/18 $42.5 and $45 strike puts. I’m expecting a steady downward movement on WBA for a few days after Thursday so that’s why I’m going with the March expiration. It’s currently trading at $48 which is only $1 away from it’s trading price during it’s last dividend ex-date. After that date, it fell from $49.54 on 11/12 down to a bottom of $43.62 on 12/02.

[tedro]

Didn’t see a good entry when I was looking then got busy with other stuff. Looks like this was a great callout for those that played it. Really nice work @Ridn2lo

[Ridn2lo]

Still holding my 03/18 puts. Up over 30% on the $42.5 and $45 strikes currently. That’s kinda where they have been mainly hanging out all day. Hoping to see some more downtrend over the next few trading days.