November 11, 2019  Terry’s Tips Trade Alert – Earnings Eagle  Portfolio   

  

WMT announces before the open on Thursday, November 14. The options are pricing in a 4.2% move while the recent post-announcement move has been 3.8%.  This gives us decent odds.  We will commit about $5000 to these trades:

 

BTO 10 WMT 27Dec19 114 puts (WMT191227P114)

STO 10 WMT 15Nov19 114 puts (WMT191115P114) for a debit of $.95  (buying a calendar)

BTO 10 WMT 27Dec19 116 puts (WMT191227P116)

STO 10 WMT 15Nov19 116 puts (WMT191115P116) for a debit of $1.00  (buying a calendar)

BTO 10 WMT 27Dec19 118 puts (WMT191227P118)

STO 10 WMT 15Nov19 118 puts (WMT191115P118) for a debit of $1.01  (buying a calendar)

 

BTO 10 WMT 27Dec19 119 calls (WMT191227C119)

STO 10 WMT 15Nov19 119 calls (WMT191115C119) for a debit of $.76  (buying a calendar)

 

BTO 10 WMT 27Dec19 121 calls (WMT191227C121)

STO 10 WMT 15Nov19 121 calls (WMT191115C121) for a debit of $.69  (buying a calendar)

 

BTO 10 WMT 27Dec19 123 calls (WMT191227C123)

STO 10 WMT 15Nov19 123 calls (WMT191115C123) for a debit of $.56  (buying a calendar)

 

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution

 

Happy trading.

Terry