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Tuesday, February 15, 2022 1:56:33 PM
Checking in on Walmart (WMT) Stock Ahead of Earnings
By: Schaeffer's Investment Research | February 15, 2022
• Walmart will report earnings before the open on Thursday, Feb. 17
• History shows that WMT is one of the worst stocks to own this month
Walmart Inc (NYSE:WMT) is gearing up for its fourth-quarter earnings report, due out before the open on Thursday, Feb. 17. When we last covered the blue-chip, big box retailer, we noted that it's one of the worst stocks to own in February. This seems to be an accurate assessment, as the stock has already shed 3.9% this month. Combine that with January's 3.4% dip and Walmart stock has started 2022 on a less-than-stellar note. WMT is marginally higher ahead of the event, however, last seen up 0.4% at $134.45, though it's still facing pressure from every several trendline on the charts.
Options traders are pricing in a 5.7% swing for Walmart stock following the event, which is much higher than the average 2.2% move the stock has made after earnings over the past two years, regardless of direction. Digging deeper, the stock has seen mostly negative post-earnings reactions, moving higher in just two instances in the last eight quarters.
Options traders are more attracted to puts at the moment, according to Walmart stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 99th percentile of its annual range. This indicates a much stronger-than-usual preference for puts over the last two weeks.
Echoing this, short-term options traders have rarely been more put-biased in the past year. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) that stands in the elevated 95th percentile of its 12-month range.
Read Full Story »»»
DiscoverGold
By: Schaeffer's Investment Research | February 15, 2022
• Walmart will report earnings before the open on Thursday, Feb. 17
• History shows that WMT is one of the worst stocks to own this month
Walmart Inc (NYSE:WMT) is gearing up for its fourth-quarter earnings report, due out before the open on Thursday, Feb. 17. When we last covered the blue-chip, big box retailer, we noted that it's one of the worst stocks to own in February. This seems to be an accurate assessment, as the stock has already shed 3.9% this month. Combine that with January's 3.4% dip and Walmart stock has started 2022 on a less-than-stellar note. WMT is marginally higher ahead of the event, however, last seen up 0.4% at $134.45, though it's still facing pressure from every several trendline on the charts.
Options traders are pricing in a 5.7% swing for Walmart stock following the event, which is much higher than the average 2.2% move the stock has made after earnings over the past two years, regardless of direction. Digging deeper, the stock has seen mostly negative post-earnings reactions, moving higher in just two instances in the last eight quarters.
Options traders are more attracted to puts at the moment, according to Walmart stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 99th percentile of its annual range. This indicates a much stronger-than-usual preference for puts over the last two weeks.
Echoing this, short-term options traders have rarely been more put-biased in the past year. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) that stands in the elevated 95th percentile of its 12-month range.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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