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Wal-Mart Stores, Inc. (WMT) and Verizon Communications Inc. (VZ) calls are popular today
Dow components are really struggling today on overseas news. Among the 29 blue chips sitting in negative territory are Wal-Mart Stores, Inc. (NYSE:WMT) and Verizon Communications Inc. (NYSE:VZ), but option bulls continue to seek upside for both stocks.
WMT is currently sitting on a 1.4% deficit at $78.14, but the retailer's calls are being exchanged at more than double the usual intraday rate. Seeing likely buy-to-open activity are the May and June 80 calls, with buyers gambling the shares will muscle atop $80 by the respective expiration dates.
Looking at the charts, the underfoot $78 level has been crucial for WMT in the past. The area contained a number of rallies in 2014, and could now switch roles to act as support. Should this happen, the stock could benefit from a potential round of upgrades, as 16 of 21 analysts rate WMT a "hold" or worse.
Meanwhile, VZ is off a modest 0.5% at $49.04, amid news of a new pay TV plan. Longer term, the shares are up nearly 5% year-to-date.
On the options front, VZ calls are trading at 1.2 times what's expected at this point in the afternoon. Potential buy-to-open activity is detected at the in-the-money June 46 call, as speculators bank on the stock to resume its uptrend by June options expiration.
Analysts are far more bullish toward Verizon Communications Inc. (NYSE:VZ) than they are toward Wal-Mart Stores, Inc. (NYSE:WMT). In fact, 17 of 23 brokerage firms rate VZ a "buy" or better, compared to six "holds" and not a single "sell."