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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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A 2024 Post. So An Analyst Jump Started The Year.

It's the first trading session of the year and the x-mas chatter is that the world is still in a mess, consumers are overextended, rents might be softening and EV sales are hitting a rough patch. So what's the analyst jump start I am talking about?
This isn't the first time it has jumped in a while. Look at this one day jump in mid December a few years ago.
The stock also did jump from $15.92 on Sept 1st 2019 to $384.86 on Sept 1st 2021. Now look at the price of the 115 puts for this friday. The time of this reading was 1:48 p.m. after the morning jump was over.
So this analyst is really reporting nothing new and simple playing the odds of getting recognized for an early year claim, knowing that the media is starving for news. Yet trying to play the downside on news that is not really news is a tough way to start the year. There are better things to be watching. (See my last's weeks blog on Costco falling). Now see how this series of Puts closed out the day.
Let's see what happens next. It dropped again the following morning. It will not drop forever. Time to move on to something different. Now note the open interest as of yesterdays close. Read what it is. The answer is ONE. That is amazing! Just one. Then see below the number 353 which represents the closing open interest. Subtract this number from the number 1011 and that's the number of in and out contracts traded on the day. Day traders, true to their name were in and out, missing the sizeable drop in share price on the following morning. It all makes sense. Dine and dash.
It also makes me wonder how many insiders played the upside with advance knowledge of this upgrade coming. That is something the regulators should be jumping on.

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