4 Trade Ideas for Walmart: Bonus Idea

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

Walmart, $WMT, comes into the week approaching resistance that has held for the past 18 months. With the range tightening as time passes, it has built an ascending triangle and as break to new highs would give a target to 188. The Bollinger Bands® are open higher. The RSI is rising in the bullish zone with the MACD positive and moving higher.

There is no resistance above 153. Support lower comes at 149 and 148 then 146.25 and 143.50 before 142. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.48% and will begin trading ex-dividend on May 5th. The company is expected to report earnings next on May 17th.

The April options chain show biggest open interest at the 145 strike on both the puts and calls, then the 150 call. In the May chain it is focused from 130 to 145 on the put side and builds from 135 to a peak at 155 on the call side. The June chain shows open interest build from 105 to a peak at 135 on the put side and spike at 145 with a slightly lower plateau from 150 to 160 on the call side.

Walmart, Ticker: $WMT

Trade Idea 1: Buy the stock on a move over 153 with a stop at 148.

Trade Idea 2: Buy the stock on a move over 153 and add a May 145/140 Put Spread ($1.15) while selling the May 160 Calls ($1.05).

Trade Idea 3: Buy the April/June 155 Call Calendar ($2.90) and sell the April 22 Expiry 145 Puts (55 cents).

Trade Idea 4: Buy the June 140/155/170 Call Spread Risk Reversal ($1.10).

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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 with the first Quarter of 2022 in the books, saw equity markets face some profit taking after a strong move higher.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil pulls back in its trend higher. The US Dollar Index looks to consolidate its move higher while US Treasuries bounce in their downtrend. The Shanghai Composite looks to continue the consolidation while Emerging Markets bounce in their downtrend.

The Volatility Index is back in the normal zone making the path easier for equity markets to the upside. Their charts saw some late week profit taking on the short term frame, showing no real damage to the recent trends higher. On the longer timeframe that profit taking takes the form of a possible top in the rally for the QQQ and SPY. As usual, the IWM continues to move sideways, in its lower 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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