WMT Options Signal Bullish Momentum: Key Strikes and Block Trades Point to $120+ Upside

• WMT surges 3.7% to $118.73, driven by Google AI partnership and Nasdaq-100 inclusion
• Options data shows heavy call open interest at $120–$125 strikes, with block trades hinting at institutional bullishness
• RSI near 49 and Bollinger Bands suggest price could test upper resistance at $117.20

Here’s the takeaway: WMT’s options flow and news-driven rally point to a high-probability upside breakout. The stock’s 3.7% intraday gain, coupled with a call-heavy open interest profile, suggests traders are pricing in a strong push toward $120+ by Friday’s expiry. Let’s break down why this matters for your strategy.

Bullish Imbalance in OTM Calls, Whale Moves at $120

The options chain tells a clear story: calls dominate at $120–$125 strikes, with 15,870 open contracts at $120 (expiring 1/16) and 10,361 at $125. This isn’t just retail noise—block trades like WMT20260116C117 and WMT20260116C118 (with 5,000+ contracts each) suggest institutional players are locking in bullish exposure ahead of the Nasdaq-100 rebalancing on Jan 20.

But don’t ignore the puts. While the put/call ratio (0.86) favors calls, heavy open interest at $110–$90 puts shows some hedging activity. This duality means: if WMT dips below $116.41 (intraday low), short-term bears could gain traction. However, the $118.73 level has held strong so far, and the MACD histogram flipping positive adds to the bullish case.

News-Driven Narrative: AI and Index Inclusion Fuel Confidence

Walmart’s partnership with Google Gemini isn’t just PR—it’s a strategic pivot to tech-driven commerce. By letting Gemini recommend its products in AI chats, Walmart is positioning itself as a digital leader. Pair this with its Nasdaq-100 inclusion (replacing AstraZeneca), and you get a perfect storm for institutional inflows.

The market’s reaction? Price action and options flow align. The stock’s surge to a 52-week high ($117.60) and the Nasdaq-100 boost mean index funds will rebalance, creating tailwinds. This validates the call-heavy options positioning—investors are betting on a sustained move above $120.

Actionable Trades: Calls at $120, Stock Entry Near $118.50

For options traders: WMT20260116C120 is the standout. With 15,870 open contracts and a strike just $1.27 below current price, this call could see explosive gains if WMT closes above $120 by Friday. If you prefer a longer play, WMT20260123C122 (651 OI) offers leverage for a $122+ target.

For stock investors: Consider entry near $118.50 if the price holds above the Bollinger Middle Band ($113.61). A breakout above $117.20 (upper band) could trigger a run to $122, aligning with the call-heavy options profile. A stop-loss below $116.41 would protect against a pullback.

Bullish Trends Ahead: Volatility and Catalysts Line Up

The next 48 hours are critical. If WMT holds above $118.50, the $120–$125 call strikes could act as a self-fulfilling prophecy. Meanwhile, the Nasdaq-100 inclusion on Jan 20 will add structural support. Watch for a potential short squeeze if the stock closes above $120—those heavy put positions at $110+ might scramble to cover.

But stay cautious: A drop below $113.61 (middle Bollinger) could reignite bearish sentiment. For now, the data points to a high-conviction bullish setup, with both stock and options offering clear entry points. The key is to balance aggression with risk management—this isn’t a one-way bet, but the odds are clearly tilted upward.