OptionsTrader
Short

DEC1 Options play on WMT

NYSE:WMT   WALMART INC
28 views
Selling the recent high of $87.07
SOLD -1 VERTICAL WMT 100 (Weeklys) DEC2 14 88/91 CALL @.20

Comments

Ok, I got inspired. Opened a debit put spread in WMT Jan 82.5 / 77.5
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What was your entry cost?
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baerrus OptionsTrader
$0.61 for WMT Jan put spread 82.5 / 77.5
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As you say, "Low probability but great risk/reward" at only 72% probability but unfortunately not Theta positive until WMT reaches $80.36, which means it almost needs to close the Earnings gap up.

Lets see how it plays out for you, the race between price movement and Theta decay.

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baerrus OptionsTrader
Hei, you seem to know what you are doing. May I invite you to http://optionsforum.net I run that forum and it is completely dedicated to options trading. It is a lot easier to share ideas than here. You can post your great charts there in a click.
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Did you just open a credit spread in 88/91 Calls? I like the idea. Dont like that you are only taking a premium of $0.20 per share
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Yes that is the credit spread I sold.

Lot's of people don't like the small amount credits BUT that means I have a HIGHER probability of success which as it is now it has 94% probability of success and already that spread is now just .06...
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baerrus OptionsTrader
I really like the setup. Playing the same move from the downside now. Low probability but great risk/reward.
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It means I am in and out of the trade between yesterdays entry and next Friday so my payday is just around the corner and with it currently at .06 I've already been paid +70% of my trade already, and I like that.
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baerrus OptionsTrader
The Key is you found a great potential reversal situation. How to exploit it is matter of style. For income I use different setups. In a case like this where a possible reversal is present I like to go for bigger bang so to speak :)... just my 2c
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