Wal-Mart Stores, Inc. (NYSE:WMT) has at least one investor excited about its short-term stock price prospect. In a segment of Options Action on CNBC, Dan Nathan reported about a significant bullish bet on the U.S. retailer.
According to Nathan, the market saw an unusually high volume of options for Wal-Mart Stores, Inc. (NYSE:WMT) on Monday. How high? About four times the normal volume, Nathan said.
The CNBC contributor said that about 85% of these options were call options.
Furthermore, one particular investor made a significant bullish bet on Wal-Mart Stores, Inc. (NYSE:WMT) on Monday morning, Nathan said. When the stock was at $79.70 a trade consisting of 21,000 January $82.50 call options was taken out. This trader paid $0.64 for each contract.
This means that the transaction would only make the trader money if Wal-Mart Stores, Inc. (NYSE:WMT), one of the top 10 brands on Facebook in the U.S., passes $83.14, or 4.5% up higher, when the contracts expire in January.
Nathan pointed out that this means the investor is betting that Wal-Mart will surpass its two-year highs at the start of next year.
Meanwhile, Nathan pointed out a rumor that billionaire hedge fund manager Bill Ackman is rumored to be considering a position on Wal-Mart. This rumor perked up the stock on Friday and may have contributed to the options traded for the stock on Monday.
Other from the rumor of an investment from Ackman, the company is set to report its quarterly performance on Thursday.
Warren Buffett’s Berkshire Hathaway reported owning about 58.8 million shares in Wal-Mart Stores, Inc. (NYSE:WMT) by the end of the first half of the year.