Rite Aid Takes Out Long-Term Trendline in Huge Rally

RAD stock has roughly doubled this week

Rite Aid Corporation (NYSE:RAD) has been on fire, on pace to roughly double in value this week thanks to the company's better-than-expected earnings and outlook from yesterday morning. RAD stock today is up 25.3% at $14.83, on pace to easily tackle the 320-day moving average for the first time since early 2017.

RAD stock will now look to sustain this rally despite a 14-day Relative Strength Index (RSI) currently sitting at 82, a reading deep into overbought territory. What's interesting is that the stock has actually been less volatile than expected in the past year, based on its Schaeffer's Volatility Scorecard (SVS) of just 8.

As for options data, peak open interest is at the January 2020 1.50-strike and 2-strike calls. However, during yesterday's breakout, the April 8 put was most popular, and new positions were being opened. Today, calls are atop the leaderboard, with traders opening the weekly 12/27 14- and 15-strike calls.