ACTION:

Buy to open the WMT May 65 puts (WMT160520P00065000, $0.70, down $0.20) at current levels.

Dear Momentum Options Subscriber,

I have a New Trade this morning on a name I’ve turned bearish on. Shares of Wal-Mart Stores (WMT) could be on the verge of falling below their 50-day moving average as long as $69 holds. With the stock trading higher today, I want to use put options to play the backtest.

 

Wal-Mart Stores (WMT, $68.07, up $0.67)

Buy to open the WMT May 65 puts (WMT160520P00065000, $0.70, down $0.20) at current levels.

Action: I like these put options at current levels, and you can use a Limit Order up to $0.80 to get the best fill.

These are the regular monthly options that expire on May 20, and I will provide the parameters of the trade in today’s Mid-Market Update.

 

All prices given in this update are current as of 10:05 a.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options