Wal-Mart Stores, Inc. (WMT) Takes Aim at Online, Last-Minute Shoppers

Wal-Mart Stores, Inc. (WMT) is surrounded by skeptics in the options pits and beyond

Dec 18, 2015 at 10:59 AM
facebook twitter linkedin

With Christmas just around the corner, retailers are pulling out all the stops to encourage shoppers to choose them. Wal-Mart Stores, Inc. (NYSE:WMT) is no exception. The big-box retail baron announced earlier it will participate today in national Free Shipping Day -- good news for a growing legion of online consumers.

Unfortunately for WMT shareholders, this news is having little impact on the stock, which is flat on the day at $58.98. Nonetheless, at least one group of option traders is betting on upward momentum into the new year, buying to open the in-the-money February 55 call.

Generally speaking, though, sentiment tilts in a bearish direction when it comes to WMT. The stock's 10-day put/call volume ratio of 0.73 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) rests in the 85th percentile of its annual range. Likewise, of the 19 analysts tracking the shares, 16 have handed out a tepid "hold" rating.

The company's decision makers are probably hoping a solid holiday season will help the shares shake loose from the skepticism -- and recover from a 31% deficit in 2015. Toward that end, WMT announced earlier its stores will stay open until 8 p.m. on Christmas Eve.

Today's "Star Wars" launch could be a boon to Wal-Mart Stores, Inc. (NYSE:WMT), too. Already, the retailer has said searches for the film's toys have increased 200% at Walmart.com.

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners