4 Trade Ideas for Walmart: Bonus Idea

• Posted by Greg Harmon
• on October 24th, 2022

Here is your Bonus Idea with links to the full Top Ten:

Walmart, $WMT, comes into the week moving back up over the 200 day SMA. The Bollinger Bands® are opening higher as it approaches resistance. It has a RSI rising back into the bullish zone with the MACD lifting off of zero. There is resistance at 139.50 and 141.75 then 145.75 and 149.50 before 152.75 and 157 then 160.25. Support lower comes at 136.25 and 133 then 130.50. Short interest is low at 1%. The stock pays a dividend with an annual yield of 1.64% and will go ex-dividend on December 8th.

The company is expected to report earnings next on November 15th. The November 11 Expiry options chain has biggest open interest at the 128 put and sees it spread from 133 to 145 on the call side. The November monthly options have biggest open interest at the 130 strike then 135 on the put side, while it is much bigger at the 145 call. The December chain has biggest open interest at the 110 put and sees it build from 130 to a peak at 145 on the call side.

Walmart, Ticker: $WMT

Trade Idea 1: Buy the stock on a move over 139.50 with a stop at 136.

Trade Idea 2: Buy the stock on a move over 139.50 and add a November 135/130 Put Spread ($1.65) while selling the November 145 Calls ($1.50).

Trade Idea 3: Buy the November 11 Expiry/November 145 Call Calendar ($1.00) while selling the November 11 Expiry 130 Puts ($1.05).

Trade Idea 4: Buy the December 125/145/155 Call Spread Risk Reversal (5 cent credit).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the October options expiration in the books, saw equity markets showed strength to end the week, continuing higher off the new lows from last week.

Elsewhere look for Gold to continue hold at support in a pullback while Crude Oil consolidates in a downtrend. The US Dollar Index continues to hold at resistance in the uptrend while US Treasuries continue their downtrend. The Shanghai Composite looks to pause in its move higher while Emerging Markets continue their downtrend.

The Volatility Index looks to remain elevated but moving lower making the path easier for equity markets to the upside. Their charts are starting to look stronger, especially the SPY and QQQ on the weekly timeframe, but with IWM less strong. On the shorter timeframe they all still look a mess but with moves over the 20 day SMA giving hope a reversal is building. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus