Options Traders Swarm Walmart Stock After Earnings Beat

Morgan Stanley saw today's results coming

Digital Content Manager
Aug 16, 2022 at 10:49 AM
facebook X logo linkedin


Morgan Stanley was right when it noted a recent profit warning from Walmart Inc (NYSE:WMT) wouldn't last. In fact, the retail giant today reported a second-quarter top- and bottom-line beat. What's more, the blue chip added adjusted earnings will likely see a softer fall than previously anticipated, and said it now expects a smaller drop in annual profits, as the company discounts products to reduce excess inventory. Plus, Walmart just announced it entered a deal with Paramount Global (PARA) to offer its streaming service to the subscribers of Walmart+. At last check, WMT is up 5.5% to trade at $139.84.

Options traders are rushing the equity in response. So far today, 103,000 calls and 53,000 puts have already crossed the tape, which is nine times what is typically seen at this point. Most popular is the August 140 call, with positions being bought to open there, followed by the 127 put in the same month series. 

The shares are today trading at their highest level since May, when the security suffered a steep bear gap. In addition, Walmart stock has burst through the 200-day moving average, bringing its quarter-to-date gains to 15%. Longer term, though, the equity still carries a 7.3% year-over-year deficit.

 

 

 

 

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