Swing Trade Idea (WMT) – September 10, 2024
Our bearish trade for Tuesday, September 10th is Walmart Inc (WMT) WMT is part of the Consumer Discretionary Staples, which performed at 5.82% over the last month with WMT overperforming relative to its sector at 14.31% over the same period.
WMT gained almost 15% over the last month and is currently overbought. A bearish diversion on WMT indicates that it will likely pull back from recent highs toward support which is at around $70. As such, we recommend playing a bearish Credit Spread that will collect over 40% of the Premium/Width, which is an excellent return.
As a close, if WMT were to trade above $78 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $3.24.
