Walmart Ramps Up Competition With Prime-Like Service

The stock is piggybacking off yesterday's surge

Digital Content Manager
Jul 8, 2020 at 9:47 AM
facebook twitter linkedin


A report from Vox's Recode said yesterday that mega-retailer Walmart Inc (NYSE:WMT) will launch a new membership program this month, in direct competition with Amazon's (AMZN) Prime service. The program will be called Walmart+ and cost $98 annually, according to reports. Perks will include fuel discounts, same-day delivery, and early access to product deals. Walmart has not issued any statements in response the report so far, and shares are down 0.9% at $125.89 at last check. 

While WMT has been on a downtrend since late-May, pressured lower by its 30-day moving average, yesterday's news caused the equity to spike toward a nearly two-month high, toppling its aforementioned line of resistance. The security also managed to launch itself off its year-to-date breakeven near the $118 mark, putting it at roughly 7% lead for 2020. 

The majority of analysts are quite bullish on WMT, despite its recent pullback. Nineteen of the 24 in coverage consider it a "buy" or better. Plus, the 12-month consensus price target of $135.39 is a 5.4% premium to its current level. 

Even more optimistic are the options pits. This is per WMT's 10-day call/put volume ratio of 5.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all but 1% of readings from the past year. This implies options traders have rarely been more call-biased in the last 12 months. 

 

 

 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners