Wal-Mart Offering Possible 16.55% Return Over the Next 24 Calendar Days

Wal-Mart's most recent trend suggests a bearish bias. One trading opportunity on Wal-Mart is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 16.55% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.71 would be kept by the premium seller. The risk of $4.29 would be incurred if the stock rose above the $80.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Wal-Mart is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Wal-Mart is bearish.

The RSI indicator is at 20.06 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Wal-Mart

Costco pays more … because it can
Thu, 30 Jan 2014 01:20:37 GMT
USA TODAY – Obama chose a Costco store in Maryland to push for a hike in the federal minimum wage.

[$$] New Wal-Mart CEO to Receive $1.2 Million Base Salary
Wed, 29 Jan 2014 23:56:34 GMT
The Wall Street Journal – Incoming Wal-Mart Chief Executive C. Douglas McMillon will receive $1.2 million in annual base salary and continue to be eligible for an annual equity award.

WAL MART STORES INC Files SEC form 8-K/A, Change in Directors or Principal Officers
Wed, 29 Jan 2014 22:04:46 GMT

Tim Hortons, PC Brands Hold Sway with Canadians
Wed, 29 Jan 2014 21:15:22 GMT
The Wall Street Journal – President's Choice joined Tim Hortons among the top 10 most influential brands in Canada last year, according to Ipsos Reid. They were the only two homegrown companies to crack the top 10 in 2013.

Whole Foods, Wal-Mart, and the Race to the Top
Wed, 29 Jan 2014 20:03:16 GMT
Motley Fool – Healthy competition is better for shareholders — and the world.

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