Profit Pregame

Walgreens Newest Growth Plan Could Be Your Next Profit Play

The second-largest pharmacy in America is making waves…

Walgreens has launched a comeback plan.

What’s happening?

Walgreens Boots Alliance Inc. (WBA) has been hit hard by the pandemic. While the company saw a massive boost at the beginning of the lockdown, as customers stockpiled for the unknown future, sales have been steadily declining. If the trend continues, it could completely wipe out the gains from the boosts earlier this year.

So, the company began looking at options to help support the business – and it seems like it has finally settled on the next step – doctors’ offices. In a recent announcement, the company revealed that it would be pairing with primary-care provider VillageMD to open 500 to 700 clinics to Walmart stores across the country over the next five years.

Where’s the money?

Walgreens will be shelling out a cool $1 billion in equity and debt to VillageMD over the next three years in exchange for a 30% stake in this startup.

Walgreens and CVS Health Corp. have been in a race to become the “one-stop-shop” for treatment centers – specifically for patients with hard to manage chronic conditions. On top of their battle with CVS, a new competitor stepped into the ring a few years ago – This e-commerce space has drawn shoppers away from physical stores making the battle even tougher.

But with Walgreen’s latest move, it looks to have moved into first place. And it’s giving us the green light on a potential profit opportunity.

Here it is…

How can I get some?

I zoned in on the perfect setup to play this recent announcement by WBA using my proprietary trading system. And when I saw this signal come up on S.C.A.N. – I knew it would be an excellent opportunity for my Profit Pregame readers. And we’re going to use a trading strategy that will not only help us get in on this lucrative opportunity for cheaper but will help us control our risk as well.

It’s called a call spread. And when it comes to this type of trade, you buy one call option and sell another. This will help you cut your cost and allow you to get in on this trade for the perfect price.

Now, I like the WBA September 18, 2020 $50 and $52.50 calls. Especially if you can get this call spread for under $0.50. If you agree and see the profit potential as I do, all you have to do is tell your broker that you’d like to buy-to-open WBA September 18, 2020 $50 call and sell-to-open the WBA September 18, 2020 $52.50 call, creating a vertical debit spread. Try to get in this trade for less than $0.50 – and just like that, you’ve got skin in the game.

In the spotlight: This homebuilder is breaking records

As we’ve talked about before, the home buying market has continued to thrive despite the pandemic. But specifically, the focus has been on homebuilders as the demand for new homes has steadily increased.

And recently, Taylor Morrison (TMHC) – which is the nation’s fifth-largest homebuilder, saw its net sales increase 94% annually for June. This was a spike for the record books.

Now, there could be several reasons this is happening. Low mortgage rates, a shortage of homes on the market, or a demand for new, tech-driven homes – but regardless of why it seems home builder’s business isn’t slowing down anytime soon.

So, I’m sure it goes without saying – but this sector is officially on my radar, and I’ll be keeping a close eye on TMHC numbers in the future.

Finally, you’ll want to hear this…

Earlier this week, I alerted readers that we hit one of our profit targets in under five minutes…

Then yesterday, I told you about an incredible opportunity to take advantage of the trading system I created to provide fast winners like this.

And today, I’m reaching out to let you know that many of your fellow Profit Pregame readers have absolutely jumped at the chance to join me for the next round of gains.

Since the open spots are filling up so fast, I’m worried that if you delay any longer, there won’t be any left.

I urge you to click here now to reserve your spot today… I have my eye on several profit opportunities I’d hate for you to miss!

Community Tips

Inline Feedbacks
View all comments