Walmart (WMT) Options Signal Bullish Setup at $110 Strike as Earnings Loom – Here’s How to Play It

• WMT stock edged higher today, closing at $102.83 with a 0.34% gain, while options activity suggests heavy call buying at the $110 strike.
• Options data shows a 0.95 put/call ratio, hinting at cautious optimism, with top call open interest (OI) at $110 ($21,356) and puts at $92.5 ($31,433).
• Technical indicators like the Kline pattern and Bollinger Bands suggest a short-term bullish trend, but RSI at 38.22 warns of potential oversold conditions.
• Key catalyst: Walmart’s Q3 earnings on Nov 20 will test market confidence in new CEO John Furner’s leadership.

The stock isn’t screaming ‘buy’ or ‘sell’—it’s whispering ‘watch this strike.’ The options market is betting on a directional move, and the technicals are lining up to either confirm or challenge that bet. Let’s break it down.Bullish Calls at $110 vs. Defensive Puts at $92.5: What’s the Play?

Options traders are clearly leaning into two scenarios: a big rally or a sharp pullback. The $110 call strike (OI: 21,356) is the most watched for Friday expiration, while the $92.5 put (OI: 31,433) acts as a floor for downside risk. This isn’t just noise—it’s a sign that smart money expects volatility.

Here’s the twist: the put/call ratio (0.95) isn’t screaming bearish, but the heavy call OI at $110 suggests a psychological level traders are eyeing. If WMT breaks above the 103.54 middle Bollinger Band, those calls could ignite. But watch the RSI—if it stays below 40 for too long, the rally might stall.

Block trades? None to report, which means no whale-sized bets to skew the data. For now, the market is speaking in whispers: “We’re ready for a move, but we’re not sure which way.”

CEO Transition News: A Win for Bulls, a Test for the Stock

Walmart’s leadership change from Doug McMillon to John Furner has analysts bullish, but the stock dipped 3% pre-market. That dip was short-lived, though—investors seem to trust Furner’s track record with U.S. operations and AI-driven strategies.

The news flow aligns with the options data. Analysts are calling it a “growth opportunity,” not a disruption, and the $118 price target from Telsey Advisory Group gives bulls a clear target. But here’s the catch: the market’s reaction to the CEO news shows that sentiment can swing fast. If Q3 earnings miss expectations, even slightly, the $92.5 put strike could become a magnet.

Actionable Trades: Calls, Puts, and the Perfect Entry Zone

Let’s get specific. If you’re bullish, the $110 call (WMT251121C00110000) expiring Friday is your best bet. Why? The OI is massive, and the stock is already testing the 103.54 middle Bollinger Band. A break above that could send it toward $107.58 (upper band), giving these calls room to run.

For a safer play, consider a bull call spread: buy the $105 call (WMT251121C00105000) and sell the $110 call. This caps your risk but still lets you profit if WMT hits $107.58.

On the stock side, look to enter near $102.43 (30D support) if the price holds. Your target? $107.58. If it breaks below $99.51 (lower Bollinger Band), the $92.5 put (WMT251121P00092500) becomes a critical hedge.

Volatility on the Horizon: Earnings as the Final Test

Walmart’s Q3 earnings on Nov 20 will be the ultimate stress test. If the report beats estimates (as expected), the $110 call strike could become a goldmine. But if the stock stumbles, the $92.5 put might be your lifeline.

The key takeaway? This isn’t a high-risk gamble—it’s a calculated bet on a company with a solid foundation. The options market is pricing in a directional move, and the fundamentals back it up. Just keep an eye on that RSI and Bollinger Band. If they confirm the trend, WMT could be the next retail story to watch.

Final Call: The data says “play the $110 strike,” but always size your position to match your risk tolerance. The market’s watching, and so should you.