$WMT · Verified Investing · 2026-10-28

I'm going to take a look at some of the technical aspects of Walmart stock. Our members in the Apex live day trading room know that I like to short sell this stock. But today, I'll see where I'll buy it, well, on the opposite side of that.

Yes, I'm looking at Walmart. Let me expand on this so that you can get a better view of it. Good. As we can see, at the beginning of October, and as we approach the end of October, our rise has been completely vertical.

We are now somewhat in a consolidation phase in the 118-120 range for Walmart.

So, I don't buy here at Walmart, as I said. I usually short sell at these prices. But where can I buy it? Here we will identify the support levels. So, let's draw your attention to the downward-sloping white trend line here.

Good. This line has been determining the price since May 21, 2026. Earlier this month, we were able to break through this trend line. So, what is one of the best indicators that you, Jake, use to know when to buy?

It's a return to the "crime scene" (penetration level). We have broken through the price action here from this trend line. I want to buy as soon as the price returns to this trend line.

This is inevitable. I will not pay extra at these prices here.

So, I am looking to buy or sell a put option for this episode, and for this thesis, at the 110 level. That is where if the price comes back to correct, it will be around 109 to 110 in that area.

Now, we want to ensure that there are multiple levels of support. We have one factor from this white trend line. I'm also going to expand the scope a little now. Now, I will draw your attention to this blue horizontal trend line.

Now, this is a major pivotal summit here from October 16, 2025. Yes. Well, this is also a key support level. As we can see here, the price bounces sharply when it touches this trend line and jumps high above it.

This is a great level of support here. As we look at the price action in the short term, we see here that the price bounces off this trend line, goes up, continues to bounce, and continues to bounce.

Hmm. Now, the same level that was acting as resistance when we broke through it will now act as support.

amazing. So, we now have two factors at the 109-110 level. Hmm. This is the minimum price at which I am looking to sell a "put" option. concept? Therefore, I am looking to sell a "put" option at the 109-110 level.

Why, Jake? Why is this? Because I have no objection to buying and owning these shares at this price. Until then, if the price continues to fluctuate or rise, I will sell this support level and collect that profit (premium).

So you could have chosen level 118 if you thought Walmart would settle at that point and continue to rise. Hmm. I like the 110 level because we identified those support levels, okay?

So, first thing, guys, I'm looking at Walmart or WMT, sorry, and we're on the put side looking to sell. So, to begin with, in the series, what do I see, Jake? Well, interest rates on buy and sell contracts and trading volume tend to be bullish at the moment.

Well, we are below level 1.0. This currently favors purchase contracts over sale contracts. So, the trend is currently upward. This is good. We can continue to sell some premiums.

Take advantage of that, and this will increase our chances of obtaining that bonus without having to buy. Okay. We will wait patiently until the trend reverses or the price drops to the support zone to get those cheaper prices.

Well, interest rates on buy and sell contracts and trading volume tend to be bullish at the moment . Well, we are below level 1.0. This currently favors purchase contracts over sale contracts .

So, the trend is currently upward. This is good. We can continue to sell some premiums . Take advantage of that, and this will increase our chances of obtaining that bonus without having to buy.

We will wait patiently until the trend reverses or the price drops to the support zone to get those cheaper prices. We can only wait. We can only wait. I want you to take a look at the implied volatility (IV) rank and the implied volatility (IV percentile) in the series.

It's in this measurement box above. Good. Now, does this environment favor the seller or the buyer?

It looks favorable to buyers. Why do you say that? Perhaps because it is high in the 80% range, exceeding 60% if I remember correctly, or am I completely wrong? So, you just said, what is the range?

Is it the right thing to do? Because I was thinking about classifying implied volatility and percentiles. Oh. Am I reading the number wrong? Is this 82%? Volatility rating 72, percentile 82%.

Yes. Good. It seems that, then, after we have finished with the interest on sales and purchase contracts and the trading volume. This is my rise. Good. That's what I thought. I'm just asking you, Tabi , what is the nature of the environment?

If the implied volatility is high, oh . Good. So, if implied volatility is high, the environment is good for sellers because the premium is high. Good . good job. You did well to take your time, Tabi.

You hit the target. Good. So, yes, this environment , excuse me. Sellers are preferred by Walmart. Good.

Now , let's take a look at the series and see what we can come up with. We are looking at a level of 110 for the sale contract. And how long do we want? Yes, I don't want to choose 23 days.

I am thinking either December 18, which is about 51 days from now, or January 15. I'll probably take a look at these two . And I'm watching the 110 here.

When selling this, our delta is at -220. This is good for us as sellers. Is the delta negative here, Tabi? Because we are looking at put options. correct. What if we were looking at purchase options (calls)?

It will be positive. correct. Now, what is the range of this delta movement? Oh , it comes down to positive one or negative one. correct. So, negative one for whom? Negative one for put options.

Positive for purchase options. on me. good job. Good. I am learning.

So, I'm looking at 110 and we have some volume here today, and a strong open interest. I want to see more volume. important. Good? That will add to our conviction.

Is this size new money or old money? New money. New money. You were absolutely right today, Tabby. You were studying very well . good job. So, yes. Now, I am looking at this date, January 15th.

Okay, Tabby. Okay . Which execution price has the highest volume? Are we looking at 109 to 110, or do you want me to look at them all? Which is the highest among them? Just check the series.

Which execution price do you think has the highest volume? Oh man, that 110,541. That's right. This is five times higher than any of the other nearby options.

There is one that is very far away. We see it, and we will pay attention to it. 300 people are coming in at the 85 sell option. Wow. Very far from the current price (out of the money).

The delta there isn't even at 0.1. This is rather funny. This is correct. Like, well, what do they know? correct. What do they know? Perhaps it's the wall of anxiety. Trading volume.

Check that out, guys. This is a key takeaway. Good? It may indicate a new focus.

Good. Now, however, I like the January 15th expiry date. It is a rich environment that favors the seller. Yes. I will get this, I will sell this put option at the strike price of 110. And that is the plan for today.

amazing. Okay, let's look at the final plan drawing we have beautifully. We are selling a put option with an expiry date of January 15, 2027. It is a put option with a price of $110.

There are 79 days until that expiry, and the bonus is only $2.39. And remember, we are just waiting and we keep getting it. The bid and ask price is 236 to 241. So, the margin is simple there, and the credit is 239. $239 per contract.

The guaranteed cash we need for this is $11,000. Remember, we need to allocate this cash to be safe and to ensure our ability to pay. The actual cost in case of allocation would be $107.61 per share, and our maximum loss is about 10,000, so we will be fine if we allocate 11,000.

Our delta is at -0.24, which is exactly in the range we want as sellers. This is correct. That's the plan for today, guys.