Wal-Mart Stores, Inc. (NYSE:WMT) – Upside call options on Wal-Mart Stores, Inc. (NYSE:WMT) are active today though shares in the world’s largest retailer are trading down for a second consecutive session, currently off 2.3% on the day at $69.23 as of 1:15 p.m. in New York. Bulls anticipating a rebound by the end of this week purchased around 2,500 calls at the Dec. 14 ’12 $70 strike for an average premium of $0.22 apiece, thus positioning to profit should shares rally above $70.22 by expiration. Like-minded strategists snapped up 4,400 calls at the Dec. 21 ’12 $70 strike at an average premium of $0.47 each, and purchased around 1,700 of the $72.5 strike calls expiring next week for an average premium of $0.05 a-pop. Traders long the $72.5 strike calls stand ready to profit should shares in Wal-Mart Stores, Inc. (NYSE:WMT) increase at least 4.8% to exceed the $72.55 breakeven price by expiration. Meanwhile, the heaviest trading traffic in Wal-Mart Stores, Inc. (NYSE:WMT) calls is in the Jan. 2013 $75 strike contracts. It looks like volume in excess of 40,000 call options traded at the $75 strike this morning for an average premium of $0.085 per contract. The sizable prints may represent closing purchases of calls sold back in July.
Equity Options Analyst
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