Walmart (WMT) Options Signal $110 Call Contention as CEO Transition Fuels Short-Term Volatility—Here’s How to Play It

• Walmart’s stock dropped 3% pre-market after CEO Doug McMillon’s retirement announcement, but long-term technicals remain bullish.
• Options data shows heavy call open interest at $110 (next Friday expiry) and $105, while puts dominate at $100 and $92.50, signaling a tug-of-war between bulls and bears.
• RSI at 32 and bearish MACD suggest oversold conditions, but a key support level at $102.43 could determine near-term direction.

The core insight? WMT’s options market is bracing for a potential $110 breakout or a $98.88 rebound—depending on how the CEO transition and holiday sales play out. Let’s break it down.Bullish Calls at $110 vs. Bearish Puts at $92.50: A Battle for Control

Options traders are split. For next Friday’s expirations, the $110 call is the most watched, with 20,708 contracts open. That’s a big bet on a 9% rally from current levels. Meanwhile, the $92.50 put (30,984 OI) is the top put strike, suggesting some fear of a deeper pullback.

Here’s what this means: If WMT holds above $100.20 (today’s open), the $110 call could act as a catalyst for a short-term rebound. But if the stock breaks below $99.39 (lower Bollinger Band), the $92.50 put buyers might push it further south. The key? Volume. With 14.3 million shares traded today, any move above $101.93 (intraday high) could signal strength.

CEO Transition News: A Mixed Bag for Sentiment

Walmart’s leadership change is both a risk and an opportunity. McMillon’s 15-year tenure stabilized the stock, but Furner’s track record at Walmart U.S. and Sam’s Club suggests continuity. The 3% pre-market drop was sharp, but the stock hasn’t closed below its 200-day MA ($97.77) yet.

Investor perception matters here. While the transition introduces short-term uncertainty, the internal promotion (Furner is a 30-year veteran) reassures many. The real test comes in January 2026, but the Q3 earnings report on Nov 20 could smooth nerves. If Walmart beats estimates, the $105 call (15,090 OI) might gain steam.

Actionable Trade Ideas: Calls for Breakouts, Puts for Hedging

For options traders:

• Bullish Play: Buy the $105 call (next Friday expiry) if WMT rebounds above $102.43 (30D support). Target: $107 (middle Bollinger Band). Stop-loss: below $100.20.
• Bearish Play: Sell the $100 put (next Friday expiry) if the stock holds above $99.39. Target: $96.50 (200D support). Stop-loss: below $98.88 (intraday low).

For stock traders:

• Entry near $100.20–$101.93 if WMT tests its 200-day MA. Target: $103.81 (middle Bollinger Band) or $108.21 (upper band). Stop-loss: $97.04 (200D support).

Volatility on the Horizon: Preparing for the Holiday Season

WMT’s technicals and options data point to a volatile December. The RSI at 32 suggests a rebound is due, but the bearish engulfing pattern warns of a possible dip. The $110 call is the wildcard—its open interest could drive a short-term spike if the stock breaks above $103.81 (middle Bollinger Band).

The CEO transition isn’t a death knell. Furner’s experience and Walmart’s omnichannel growth (grocery, e-commerce) still look solid. But for now, the market is pricing in uncertainty. Play it like a chess game: protect against a $98.88 drop with puts, but keep calls ready if the stock surprises to the upside.

One thing’s clear: WMT isn’t going anywhere in 2026. The question is whether this dip is a buying opportunity or a warning shot. Your move.