Wal-Mart Stores, Inc. (WMT) Traders Split on End-of-Week Path

Wal-Mart Stores, Inc. (NYSE:WMT) has taken a nosedive, following its first-quarter earnings miss

May 19, 2015 at 10:49 AM
facebook X logo linkedin


It's a pretty dreary day for Wal-Mart Stores, Inc. (NYSE:WMT), with the shares off 3.9% at $76.81, thanks to a first-quarter earnings miss and a price-target cut to $81 from $82 at Deutsche Bank. The big drop has sparked a rush of activity in WMT's options pits, with overall volume running at nine times the average intraday pace.

Drilling down, weekly option traders are split on the equity's near-term trajectory. Specifically, buy-to-open activity has been detected at WMT's weekly 5/22 77-strike put and 78-strike call. Simply stated, put buyers are betting on the security to extend its decline south of $77 through week's end -- when the series expires -- while call buyers are betting on a quick rebound north of $78.

Widening the sentiment scope reveals it's been long calls that have been preferred on WMT in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 3.12 rests higher than 82% of all comparable readings taken in the past year.

On the charts, WMT has been in a steady downtrend since topping out at its record peak of $90.97 in mid-January, off 15.6%. What's more, today's post-earnings plunge has shares of Wal-Mart Stores, Inc. (NYSE:WMT) on pace for their lowest close since early November. Regardless of where the stock settles the week, today's option buyers can rest easy knowing the most they stand to lose is the initial premium paid -- and currently, WMT's short-term options are priced at relatively low levels.
 

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