Rite Aid, Walgreen's Merger Could Total 11% Return This Year


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


In late 2015,

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Walgreens Boots Alliance Inc (NASDAQ: WBA) announced it was acquiring competitor Rite Aid Corporation (NYSE: RAD) for $9.00 share.

The deal was expected to be completed in the second half of 2016, but there's still no word on the deal after the Q2 call. However, Rite Aid management has repeatedly confirmed it expects the deal to close in late 2016. The FTC has yet to approve the merger, but both companies have stated conversations remain active with the FTC regarding the pending deal.

Last month, rumors surfaced about a possible takeover of Rite Aid/Walgreens stores by supermarket Kroger Co (NYSE: KR).

Rite Aid reported Q2 earnings late last week, missing on revenues despite meeting EPS estimates.

With Rite Aid's stock trading at just over $8, if the deal does in fact close, it represents a nearly 11 percent gain, a sizable opportunity.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: EarningsM&A