Walmart Stock Extends Selloff After Earnings

The security is battling its 2021 breakeven mark

Deputy Editor
Nov 16, 2021 at 10:48 AM
facebook X logo linkedin


Blue-chip retailer Walmart Inc (NYSE:WMT) stepped into the earnings confessional this morning, reporting third-quarter earnings and revenue were both well above Wall Street's estimates. In addition, comparable-store sales rose more than expected, after customers flooded the store to buy up price-sensitive groceries amid rising inflation. The mega-retailer also hiked its annual sales and profit forecast ahead of an expected surge in demand for toys and apparel as the holiday season looms.

Despite the upbeat earnings news, WMT is taking a step back this morning, last seen down 2% at $143.95, and battling its year-to-date breakeven mark. In fact, the equity has been in selloff mode since its October rally lost steam at the $152 level earlier this month.  

In response to the earnings event, options traders today are piling on Walmart stock. Already, 112,000 calls and 41,000 puts have crossed the tape -- six times the intraday average with volume running in the 100th annual percentile. The weekly November 150 call is the most popular, followed by the 148 call in the same series, with positions being opened at the latter. 

A broader look shows options traders have been much more bullish than usual over the last 10 weeks. This is per the security's 50-day call/put volume ratio of 3.71 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 76% readings from the past year, implying a healthier-than-usual appetite for long calls of late.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI