Walmart (WMT) Bearish Earnings Play – Aug 12th, 2019

Bearish – WMT $107.28 – Consumer Staples

The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.

On Friday’s Options Action, the crew analyzed the performance of Walmart earnings. Walmart has broken out to new highs, however, has failed to gain ground on a relative basis to the market. Coupled with a trendline break and a minor head & shoulder formation, a pullback on earnings is likely. Expecting WMT to trade lower, Michael Khouw suggests buying an Oct 105/95 Put Vertical for $2.05 Debit. As of Friday’s close, these calls were trading at a $2.11 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: WMT OptionsAction TradeView WMT Trade

Upcoming Event:

Maximizing Profits with Debit Vertical Spreads – Aug 15th @ 4:15 PM EST – Register Now

Track DailyPlay Positions

Track open DailyPlay trades with Live P&L on all positions in our Portfolio tool!