On CNBC's Options Action, Dan Nathan analyzed the options trading activity in Wal-Mart Stores, Inc. WMT on Wednesday. The retailer caught his attention because its call options volume was 2.5 higher than its average daily call options volume.
Nathan also noticed a big trade in the name. There was a purchase of 20,000 contracts of the September 72.50 calls for $0.89. The trade breaks even at $73.39 or 1.60 percent higher from the current stock price. Nathan explained that the stock has recently dropped below its up trend line and since its analyst day is scheduled for October, it's a good idea for traders who want to take a long position to use options and define risk.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.