Rite Aid seen as interesting arb pick

• Rite Aid (RAD -0.4%) is the top arbitrage pick of Chris DeMuth for 2017.
• The FTC review of the Walgreens buyout has held shares back due to the lingering antitrust risk.
• "The $0.87 arb spread offers a 68% IRR if the deal closes by February," notes DeMuth.
• Just this week, investors betting on the Virgin America-Alask Air combination to close were rewarded when the deal landed antitrust approval.