4 Trade Ideas for Walmart: Bonus Idea

• Posted by Greg Harmon
• on September 7th, 2021

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

Walmart, $WMT, made a top at the end of November and then started to pullback. It eventually fell under the 200 day SMA and bottomed in March. The rebound met resistance at the 200 day SMA and rode sideways with it for 4 months until pushing over at teh beginning of August. It ran to the September 2020 top where it met resistance again and pulled back. This time it found support quickly and reversed to end last week moving higher.

The RSI is rising in the bullish zone with the MACD level and positive after resetting lower. The Bollinger Bands® are squeezing as well. There is resistance at 151.50 and 153.50. Support lower comes at 146.25 and 143.40 then 138.25 and 136. Short interest is low at 1.2%. The stock pays a dividend with an annual yield of 1.47% and will not trade ex-dividend until December 9th. The company is expected to report earnings next on November 16th.

The September options chain shows big open interest at the 140 put strike. On the call side it is equaled at teh 145 strike but much bigger at 150 and 155. The October chain has big open interest from 150 to 140 on the put side and bigger and focused at 150 then 155 on the call side. The November chain covers the next earnings report. It shows biggest open interest at 150 on the put side then tailing to 135. On the call side it is large from 150 to 170.

Walmart, Ticker: $WMT

Trade Idea 1: Buy the stock on a move over 151.50 with a stop at 145.50.

Trade Idea 2: Buy the stock on a move over 151.50 and add an October 150/145 Put Spread ($2.00) while selling the November 160 Call ($1.40).

Trade Idea 3: Buy the October/November 155 Call Calendar ($1.70) and sell the October 140 Put (55 cents).

Trade Idea 4: Buy the November 140/155/165 Call Spread Risk Reversal for free.

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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 heading into Labor Day Weekend, the unofficial end of summer, saw equity markets showed strength across the board.

Elsewhere look for Gold to continue its short term move higher while Crude Oil also moves to the upside. The US Dollar Index continues to move lower while US Treasuries consolidate in their uptrend. The Shanghai Composite looks to continue the move higher in broad consolidation while Emerging Markets show signs of a possible reversal higher.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts also look strong, especially on the shorter timeframe. On the longer timeframe both the QQQ and SPY show strength as well with new weekly highs. The IWM is showing strong progress as it moves towards the top of the long consolidation range. 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.

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