After The $10 Rout , Is Wal-Mart A Buy?
Is Wal-Mart (WMT) A Buy? Hello Smart Option Sellers! WMT was taken to task yesterday to the tune of a $10 drop. I don't think it has ever dropped that much in a single day. They released earnings and the market didn't like it. Here's the current chart. For those of you who have been with me over the years, you know that one of my all-time favorite events is when top notch companies like WMT have a huge drop, as it makes for some of the best put-selling opportunities. Period! So is it time to jump on this one? Possibly. I hate to be uncertain about it, and some of you emailed me yesterday, but I'm not sure the selling is over. We could see WMT drop a bit more, possibly to $90 per share, or a tad lower. It currently sits near $94. The other reason why I'm hesitant at this moment in time is because of the price of the stock itself. At The Smart Option Seller, we try to focus on strike prices of $50 or less, and with WMT being an expensive stock (for our standards), the combination of strike prices and expiration months offered, it might be tought to find the ideal play right now. But, for those of you inclined to take a stab, I will offer up two unofficial plays: Look to sell the WMT June 2018 $67.50 or $70 puts, currently trading at $.26 & $.35 respectively Or Look to sell the WMT September 2018 $60 puts for $.25 or higher. It's currently near that level. I'm going to be closely watching WMT over the next few days and if I feel it's bottomed out, I will issue a trade recommendation then. My concern of course is its competition with Amazon, and if we choose the September 2018 expiration, we still would have two more earnings announcements to get through. Could there be a possibility it could drop $10 again on those next two announcements? We'll see... That's all for now. Feel free to let me know if you get involved with WMT. Continue to contact me here Regards,
Lee Let's Grab That Cash!
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